As part of the Mable community offering your services as an independent support worker, you’re in control of your own tax and super. We understand that tax time can be overwhelming so we have some guidelines on what to keep in mind.
Keep track of your tax requirements
Being an independent support worker means that your income may not be consistent from month to month. Make sure to put money aside each month to pay tax bills in bulk once they are due. Please note, if you don’t meet your tax obligations, you could risk a heavy fine.
How much tax do I need to pay?
If you’re unsure of how much tax you need to pay, there are a number of income tax calculators available online such as Money Smart’s online income tax calculator or the simple tax calculator on the Australian Tax Office’s (ATO) website.
As an independent support worker, you’ll need an Australian Business Number (ABN). If your business is also registered for Goods and Services Tax (GST), remember to set money aside for this too, and keep in mind that many home support services are GST exempt.
What are tax deductions?
Tax deductions are expenses you have incurred in order to earn your income. Deductions reduce your taxable income before your tax is calculated.
Tax deductions include:
- Work-related expenses.
- Self-education expenses.
- Charitable donations.
- Cost of managing your tax affairs (eg paying your accountant).
Keep track of your business expenses throughout the year. If you aren’t sure whether something is an expense, call the ATO or ask your accountant.
As an independent support worker, you’ll need to think about your superannuation. If you don’t put money towards your superannuation, you may not have enough when you retire. The rate has recently changed. Currently, the super you can save is calculated by taking 10% of your ordinary time earnings. Make sure you make regular calculations and set this money aside in a savings account or superannuation fund.
Most independent support workers can claim a full deduction for contributions they make to their super until they turn 75. You may also be eligible for the super co-contribution payment, which is designed to help low-to-middle income earners save for their retirement. If you’re eligible, and you make personal super contributions, the government will match your contribution up to certain limits, unless you have claimed your contribution as a tax deduction.
To work out what super you need to pay, you’ll need to work out what your income is per quarter.
For example, if during the first quarter of the financial year, ordinary time earnings were $8,000, the super contribution per quarter was: $8,000 x 10% = $800.
For more information, visit the ATO website.
This information shouldn’t be considered legal, accounting or tax advice. We expressly disclaim any responsibility for any action taken or not taken based on this information. Please speak with an accountant, tax adviser or your financial adviser for more information.
We’ve worked with Gow-Gates Insurance Brokers Pty Ltd to establish a suite of covers that are available to all its affiliated independent support workers when providing services arranged and invoiced through the Mable platform.
As an independent support worker, you’ll need professional indemnity and public liability insurance to protect yourself should anything happen to your client whilst you are providing support to them.
The cover only applies for work that is arranged and invoiced through the Mable platform. You’ll not be covered for work arranged or invoiced outside the platform. You must have an accepted agreement with your client before any work starts, or you won’t be covered.