How do I work out my tax?

As you are an independent worker, you will need to take control of your own tax and super.

Read our tips for how to stay ahead with your tax and visit our how does super work? page. You can also check out Airtax’s answers to common tax questions.

Setting aside money for tax

Being a self-employed care worker means your income is probably not consistent from month to month. Check out our 9 steps to managing an unpredictable income.

Planning ahead is key. It may be difficult to pay a large tax bill once it’s due, so make your life easier by putting money aside for this.

It is important to remember that if you do not meet your tax obligations, you could be at risk of a heavy fine. If you are experiencing any financial hardship, the ATO can work with you to make a payment plan.

How much tax do I need to pay?

If you are unsure how much tax you need to pay, there are numerous income tax calculators available on the Internet – you can use one to work out how to set aside money for your upcoming tax bills.

Check out Money Smart’s online income tax calculator or the simple tax calculator accessible via the ATO’s website.

As you are working under your Australian Business Number (ABN), if your business is registered for Goods and Services Tax (GST), remember to set this aside also. But keep in mind that many home care services are GST exempt.

What are tax deductions?

Tax deductions are certain expenses you have incurred to earn your income. Deductions will reduce your taxable income before your tax is calculated.

Tax deductions include:
– Work related expenses
– Self education expenses
– Charitable donations
– The cost of managing your tax affairs (e.g. paying your accountant)

Keep track of your business expenses throughout the year. Here’s the ATO’s guidance on income and deductions. If you aren’t sure whether something is a valid expense, call the ATO or ask your accountant.

If you are in an employment relationship with your client, Mable withholds PAYG tax and generates a group certificate which you can use to complete your tax return. For details please contact us.

Note: The above information should not be considered legal, accounting or tax advice. We recommend you speak with an accountant, tax advisor or your financial advisor. We expressly disclaim any responsibility for any action taken or not taken based on this information.


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