Why Do You Need ABN?

Now the purpose of this video is when you go for work somewhere and the company ask you to have your ABN and they want you to pay on ABN. Now what does that mean that means that you will not be an employee, so you need to apply with tax office to get an ABN number. ABN is Australian business number.

You can apply it online but like you know why do you need ABN as such you need ABN because they want to hire you. You will be on the contract.

It is not employment it is a contract. You are being hired as a contractor not as an employee. Just remember that and I think you guys need to check in the ATO website. There is a tool called calculator versus employee tool. So please check that tool,

there are few conditions and just check whether you should be hired as a contractor or you should be hired as an employee and in case you should be hired as a contractor just apply for ABN number.

There are few points I have written what will happen if you are hired as a contractor. There are few things:

• You will not be paid super because you are as a contractor unless they want to pay. Normally the companies if they hire on ABN then they do not pay super. Normally that’s a normal practice.
• You need to have your own workers insurance that’s also a normal practice. In case you’re a contractor then normally companies require you to have your own workers compensation. if you are injured during the work then you are not covered normally then you are not covered under their workers compensation policy. They normally require you to have your own workers compensation policy.
• You pay your own tax so normally they will not deduct any tax from your payment. So you will be paying tax at the end of the year once at the time of lodgement of tax return you will be paying your own tax.

• There is no sick leave there is no annual leave and you know in case they want to say you know goodbye to you it is very easy for them to say you good luck and like we don’t have work.

So you know when they want to hire you as a contractor you need to consider all these points.