For more information, see our ITR12 Comprehensive Guide. Also see section 8 (1)(d) in respect of holders of public office. Taxpayers who earn commission income will have to consult section 11(a) of the Income Tax Act no 58 of 1962 to determine exactly what expenses can be claimed. Bad and doubtful debts – employment related.Ĭommission, independent contractors, holders of public office.Repayable amounts – amount received for services rendered as refunded by that person.Wear–and-tear – in respect of certain assets.Legal costs – under certain qualifying circumstances.Provident fund contributions (only from 1 March 2016).However, the type of expenses you can claim is dependent on the type of income you received.Įxpenses allowed by the law for different types of income are the following: For example, before they're contracted, the hirer must give them an information booklet with rates and costs.Tax legislation provides for a taxpayer to claim certain expenses incurred during a year of assessment against the income received. Owner drivers and forestry contractors in the transport and forestry industries have special protections to help them run their businesses. You can't be punished for choosing to exercise these rights. the right to engage in certain industrial activities.Independent contractors and principals (their hirers) have: Rights to workplace and industrial activities The Independent Contractors Act 2006 allows independent contractors to ask a court to set aside or change a contract if it's harsh or unfair.įor more information about unfair contracts and the Act, please call on 13 28 46.ī also has resources on tax and super, negotiating good contracts and managing disputes. If you think you're in a sham contracting arrangement, the Fair Work Ombudsman can investigate. This is usually done to avoid paying employee entitlements. Sham contracting is when an employer disguises an employment relationship as an independent contracting arrangement. find the right insurance to protect yourself against disruptions to your business such as legal claims or work injuries.apply for the relevant licences and registrations.check that your proposed business name doesn't infringe on existing trade marks.register a business name (this is optional if you're trading under your personal name).visit Self-Employed Australia for information about super, insurance and workers compensation.Once you make the decision to become an independent contractor, you'll need to: ridesharing and food delivery services in the gig economy.creative industries such as music and film.They're paid for the results they achieve and are personally responsible for whether their business makes a profit.Ĭontractors are common in industries with flexible and time-limited projects such as: Independent contractors are usually hired for a specific task and invoice the client when it's done. But you can also be a contractor who works in your own company, partnership or trust. Usually, independent contractors set up as a sole trader and run their business with their own Australian Business Number (ABN). It's also known as contracting or sub-contracting. An independent contractor is someone who is self-employed and provides services to clients.
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