In recent years, a growing number of Australians have transitioned to self-employment<\/strong>, seeking to supplement their income<\/strong> or break free from traditional employmen<\/strong>t. While this shift offers freedom and flexibility, it also comes with significant tax obligations<\/strong> that many new business owners overlook. To assist, H&R Block<\/strong> has shared essential tips for managing taxes effectively.<\/p>\n\n\n\n
One common misconception is treating a side hustle<\/strong> as a hobby. However, the Australian Taxation Office<\/a> (ATO) mandates that all income from business activities be reported in your tax return. Ignoring this responsibility could lead to penalties or legal issues.<\/p>\n\n\n\n
Adjusting to the financial responsibilities of self-employment can be challenging. Unlike employees, who have taxes deducted directly from their pay, self-employed individuals must actively manage their cash flow. Setting aside money for tax payments is essential to avoid financial stress during tax season.<\/p>\n\n\n\n
For businesses with annual turnovers exceeding $75,000<\/strong>, registration for the Goods and Services Tax (GST) is required. GST-registered businesses can claim back GST on purchases, but must lodge Business Activity Statements (BAS)<\/strong> quarterly. This adds another layer of financial planning and record-keeping.<\/p>\n\n\n\n
Navigating taxes independently can be daunting, but professional assistance can make the process smoother. Engaging an experienced tax agent<\/strong> or accountant offers numerous advantages:<\/p>\n\n\n\n
Moreover, the fee paid to your tax agent is itself tax-deductible, adding to its value.<\/p>\n","protected":false},"excerpt":{"rendered":"
Thousands of Aussies are trading their 9-to-5 jobs for the freedom of self-employment, but many overlook one critical aspect\u2014taxes. From unexpected obligations to hidden deductions, navigating the ATO\u2019s rules can feel overwhelming. <\/p>\n","protected":false},"author":5,"featured_media":100086,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-100082","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=100082"}],"version-history":[{"count":4,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100082\/revisions"}],"predecessor-version":[{"id":100087,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100082\/revisions\/100087"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/100086"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=100082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=100082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=100082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}