Scotty Posted September 14, 2014 Report Share Posted September 14, 2014 Hi I have been looking at some contract positions in Perth and wondered if anyone could give me a brief understanding of how this works in Australia and how much tax I would expect to pay? Day rate: $700 - $1200. Quote Link to comment Share on other sites More sharing options...
Bibbs Posted September 14, 2014 Report Share Posted September 14, 2014 I'm a contractor. I started my own company, registered with the ATO. It's a lot simpler to be a Sole Trader, but I couldn't do that for certain reasons. I work out my hourly rate, x40 hours a week, x48 weeks a year. I invoice +GST (as I'm over 80k which is the tax free threshold). Every month I pay myself a salary, pay myself super. I then pay the tax office my PAYG tax & Medicare. Every quarter I pay my GST. At the end of the year I then get my accountant to settle up. Quote Link to comment Share on other sites More sharing options...
Scotty Posted September 15, 2014 Author Report Share Posted September 15, 2014 I'm a contractor. I started my own company, registered with the ATO. It's a lot simpler to be a Sole Trader, but I couldn't do that for certain reasons. I work out my hourly rate, x40 hours a week, x48 weeks a year. I invoice +GST (as I'm over 80k which is the tax free threshold). Every month I pay myself a salary, pay myself super. I then pay the tax office my PAYG tax & Medicare. Every quarter I pay my GST. At the end of the year I then get my accountant to settle up. What percentage of tax do you pay as a contractor? Is the setup similar to UK? Quote Link to comment Share on other sites More sharing options...
Bibbs Posted September 16, 2014 Report Share Posted September 16, 2014 Business tax is 30% (I think). For the rest, I have this table :- [TABLE=width: 309] [TR] [TD]Tax Limit:[/TD] [TD]Tax Due:[/TD] [TD]%[/TD] [/TR] [TR] [TD]$18,200[/TD] [TD=align: right]$0[/TD] [TD=align: right]19.0%[/TD] [/TR] [TR] [TD]$37,000[/TD] [TD=align: right]$3,572[/TD] [TD=align: right]32.5%[/TD] [/TR] [TR] [TD]$80,000[/TD] [TD=align: right]$17,547[/TD] [TD=align: right]37.0%[/TD] [/TR] [TR] [TD]$180,000[/TD] [TD=align: right]$54,547[/TD] [TD=align: right]45.0%[/TD] [/TR] [/TABLE] Quote Link to comment Share on other sites More sharing options...
Bibbs Posted September 16, 2014 Report Share Posted September 16, 2014 (edited) For a rough idea .. $700 x5 x48 = $168k, $1200 x5 x48 = $288k [TABLE=width: 332] [TR] [TD]Annual:[/TD] [TD=align: right]168000[/TD] [TD=align: right]288000[/TD] [/TR] [TR] [TD][/TD] [TD][/TD] [TD][/TD] [/TR] [TR] [TD]Limit:[/TD] [TD] 80,000.00[/TD] [TD] 180,000.00[/TD] [/TR] [TR] [TD]Tax Due:[/TD] [TD] 17,547.00[/TD] [TD] 54,547.00[/TD] [/TR] [TR] [TD]Top limit:[/TD] [TD] 0.37[/TD] [TD] 0.45[/TD] [/TR] [TR] [TD][/TD] [TD][/TD] [TD][/TD] [/TR] [TR] [TD]Medicare:[/TD] [TD] 3,360.00[/TD] [TD] 5,760.00[/TD] [/TR] [TR] [TD]Total:[/TD] [TD] 50,107.00[/TD] [TD] 103,147.00[/TD] [/TR] [TR] [TD]%age:[/TD] [TD] 0.30[/TD] [TD] 0.36[/TD] [/TR] [TR] [TD][/TD] [TD][/TD] [TD][/TD] [/TR] [TR] [TD]Net Annual:[/TD] [TD] 112,013.00[/TD] [TD] 174,773.00[/TD] [/TR] [TR] [TD]Month:[/TD] [TD] 9,614.42[/TD] [TD] 15,044.42[/TD] [/TR] [TR] [TD]Tax:[/TD] [TD] 4,175.58[/TD] [TD] 8,595.58[/TD] [/TR] [TR] [TD]Medicare[/TD] [TD] 280.00[/TD] [TD] 480.00[/TD] [/TR] [/TABLE] *You'll also need to factor Super in .. currently at 9.5% I think. Edited September 16, 2014 by Bibbs Quote Link to comment Share on other sites More sharing options...
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