Have you realised it’s time to take the plunge and sign up to Better Caring as an independent worker, but you’re not sure how the money works?
- Have a job and you’re going to earn some extra income through Better Caring
- Are planning to leave your job to sign up to Better Caring full-time
- Don’t currently have any income
- Have existing clients who’d like to hire you directly through the Better Caring platform
Better Caring offers you the flexibility of working as much or as little as you like. And you can continue to earn a salary elsewhere and work independently through the platform at the same time.
If you do this, it’s important you keep track of what you’re earning through Better Caring and treat this income as separate. As an independent Better Caring worker, you’re responsible for your own tax and super. Insurances are arranged by Better Caring on behalf of all approved workers so that’s one less thing to worry about.
To help you get started, here are the top five things to consider when you become an independent worker through the Better Caring platform.
- Be realistic about your hourly rate. You can set an hourly rate on your profile but be realistic about what you’re really earning. If you have or had a salary which included holiday pay, sick leave and other perks, calculate what kind of hourly rate this should equate to. Remember to also take a look at what other workers in your area are charging, and consider a rate that reflects your skills and experience, while also remaining competitive. Click here to read more information on what to charge.
- Get an ABN and think about GST. Unless your total Better Caring income for the year is going to reach $75,000, you don’t normally need to register for GST. Both are really easy to apply for and free through the Australian Business Register or Airtax, but we also recommend speaking to a financial advisor to obtain specific advice about your particular circumstance.
- Open a separate bank account. Use a separate bank account for your Better Caring earnings – this will help you to keep track of how much you’re earning as an independent worker, and will make your life easier when you’re setting aside money for tax and super. Another way you can track your earnings on Better Caring in via the “billing” section on your dashboard.
- Set aside money for tax. Remember as a Better Caring worker, you have no employer withdrawing tax on your behalf, so you must remember to set aside the money you will need to pay the government at tax time. The ATO provides a simple tax calculator to help you with this. As a rule of thumb, put aside 30% of your Better Caring earnings each time a payment from a client comes through. Remember to keep a record of any tax deductions – such as business expenses, or charitable donations.
- Set aside money for super. Put aside 9.5% of any Better Caring earnings and make sure you pay into your super before the end of the financial year. You can either make a superannuation contribution to your existing super fund or choose a new one. This will be tax-deductible also.
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.