HI Michael,
The things you need to ask an account about is "How familiar are you with Personal Services Income workers". That's the ATO term for contractors who earn 100% or nearly 100% of their income from a single source. If you don't have multiple clients then the Tax Office wants you to declare yourself, as a sole trader or as a Pty Ltd company, as a Personal Services Income entity. If you have a company you "work through", they're interested in ensuring that of the income the company earns from your personal exertions practically 100% of that income is paid out as a single salary (to you) + the costs of being self-employed - like paying Superannuation Guarantee payments, professional costs such as computers, software, etc, etc. What they don't want to see is your company earns X, and you pay a salary of X/2 to you and X/2 to your wife for "doing the books". Cheers, Trevor From: [email protected] [mailto:[email protected]] On Behalf Of Michael Ridland Sent: Thursday, 29 April 2010 4:37 PM To: ozDotNet Subject: Contracting to a single company Hi I've heard from some people that there is tax implications of contracting to a single company for more than 75 percent of your income, is there any truth to this? Thanks,
