Note: The Information below is general in nature and should not be considered legal, accounting or tax advice. We recommend you speak with an accountant or tax advisor or your financial advisor and we expressly disclaim any responsibility for any action taken or not taken based on this information. We also direct you to the following sites which provide information regarding business structures and starting a business:
What is a Sole Trader?
This is the simplest form of business structure as you can trade in your own name
The structure is inexpensive to set up because there are few legal and tax formalities. If you operate your business as a sole trader, the business is you. You trade on your own and control and manage the business. You are legally responsible for all aspects of the business – debts and losses cannot be shared. Many individuals starting as a sole trader decide to trade under their own name (eg. Mary Smith). Alternatively, you can also register a business name (such as Mary Smith Cares). The decision is yours.
As a sole trader, you use your individual tax file number (“TFN”) when you lodge your income tax return. The business income is treated as your individual income and you are solely responsible for any tax the business must pay.
Does Better Caring require an ABN to list my profile?
Better Caring requires an ABN before you can be approved as you will be operating as an independent contractor. In addition to this, an ABN is usually required on invoices we issue for any clients you work with who have government funding. You can apply easily and for free through Airtax or the Australian Business Register website directly.
Your ABN should be in your name (or in a business name registered under your name) for verification on the Australian Business Register.
What is an Australian Business Number (“ABN”)?
If you carry on an enterprise in Australia as a sole trader, you can apply for an ABN for your business and use this number for all your business dealings.
Do I have to register for Goods and Services Tax (“GST”)?
You can register for goods and services tax (GST) if you carry on an enterprise. You can apply for GST registration for free through Airtax or on your ABN application form on the Australian Business Register website. You must be registered for GST if your annual GST turnover is $75,000 or more.
We recommend you speak to your accountant or tax advisor to ascertain whether you are required to register for GST.
No person should rely on the information herein without first obtaining advice from a qualified professional person. This information is provided on the terms and understanding that Better Caring is not responsible for the results of any actions taken on the basis of information in this publication, nor for any error in or omission from this publication; and is not engaged in rendering legal or other professional advice.
Better Caring expressly disclaims all and any liability and responsibility to any person, in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of this information.