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Tax Tips for Education Experts: Applying for your ABN, and more

Now that you’re an Education Expert, you’re the master of your own destiny. You’re the maker of your own dreams. And you’re the boss of your own business.

Congratulations – and welcome to the world of business ownership!

As part of your contract with Sofiri, you’ll need to provide us with your Australian Business Number. Here’s our three-step guide on how to get it done in about ten minutes.

What’s an ABN?

An ABN is a unique 11-digit number used to identify your business to the government and to the community.

Note that an ABN is different to a Tax File Number (TFN), which the Australian Tax Office uses to identify tax payers (not business owners). Applying for an ABN can be done online, and for free.

You’ll need an ABN in your work as an Education Expert, as you are a sole trader running a business. This is based on the fact that you:

  • Are providing commercial services
  • Have the intention to profit from these services
  • Are offering these services on a regular basis, and
  • Are engaged in business activities

While we don’t claim to be tax professionals, what we have done is collate the information provided by the Australian Tax Office into a simple, three-step process. Make sure you work with an accounting or tax professional on your personal situation (and on your tax returns)!

How do I apply for an ABN?

Step 1:

You’ll need a Tax File Number (TFN) to apply for an ABN. If you’ve ever had a job in Australia, you’ll probably already have a TFN as it’s an important part of your tax and superannuation records (as well as your identity!).

To find your TFN, look for any letters you’ve received from the Australian Tax Office (ATO), from your superannuation provider, or on any payment summaries provided by your employers. Alternatively, you can call the ATO on 13 28 61 (8.00am to 6.00pm, Monday to Friday) and enquire directly with them.

If you don’t have a TFN, you can apply for one here.

Step 2:

With your TFN handy, you’re now ready to register online for your ABN.

Get started here, by simply clicking, ‘Apply for an ABN’. Note that, as an Education Expert, you will be registering your business as a sole trader. In your application, you’ll also need to register for GST if you expect to earn more than AUD75,000 in your work with Sofiri (for more on registering for GST as a sole trader, see here).

If your ABN application is successful, you’ll receive an online notification of your ABN immediately. If the ATO need to investigate or review your application further, it may take up to 20 business days to receive.

Step 3:

Once you’ve received your ABN, simply provide us with the details in your Sofiri contract!

Keeping Great Records

There are a few simple ways you can set yourself up for business success with Sofiri. First of all, we recommend opening a separate bank account that’s used ONLY for your Sofiri income and expenses.

Secondly, keep good records, all the time. Maintaining records will be crucial in filing your tax return at the end of the financial year. What we’re talking about here is making sure you keep your purchase records. That includes receipts, invoices, credit card statements, and diaries. For more on this from the ATO on this, you can see their website here. As always, you’ll find that an accounting or tax professional will be able to best advise you on these kinds of matters.

We’re pleased to be able to assist you in your end of financial year tax return, by providing you with your annual transaction summary statement. This should make your tax return a little easier!
If you have a strong preference not to use your own ABN, or you have other questions related to this post, as always, simply get in touch with your National Experts Manager!

 

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