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Why is an ABN required for tutors with an agency? (1 Viewer)

strawberry4

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I've been enquiring with a few tutoring agencies to enlist as a tutor. Why do they ask me to get an ABN from the ATO? Are there any risks or benefits involved?
 
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Places like TutorCentral ask for once, as they allow businesses to advertise.

An actual tutoring college shouldn't need an ABN - but would need your tax file number
 

Dreamerish*~

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Don't apply for TutoringForExcellence. Just don't.
 

wanton-wonton

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An ABN is required since you're an individual/sole trader for your own business. I.e., you're working for yourself, instead of working for a tutoring agency. It's like being your own boss. For such reasons, there'll be no workplace compensations if accidents occur. That's the disadvantage. Not too sure about advantages...I guess it's just cool to have one. :)

I think that's it anyway.
 

redruM

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to register as a business, there are significant costs (esp if you want to do it for the sake of it). the registration is around $600-700, and you get your ABN. you can in fact do it online at ASIC.

that from doing corp. law. lol.
 

xiao1985

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i doubt abn can cost that much... though an ltd company can cost alot...

abn should be nothing more than a procedure...

but yeh agree on the point that u are working as a sole trader...
 

xiao1985

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intuition said:
ABN's are free

Registering a company will cost you approx $1000
also heaps of regulatory paper bs every end of fiscal yr =(
 

minushuman

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strawberry4 said:
I've been enquiring with a few tutoring agencies to enlist as a tutor. Why do they ask me to get an ABN from the ATO? Are there any risks or benefits involved?
Yes, ABN's are one of the key methods a few scam runners have been using to steal identities. Be very careful.
 

fleepbasding

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Hey all.

I'm interested in tutoring people (just me, not an agency). I want the money I earn to be good for getting youth allowance in a years time. How do I do this? Is there anything I need other than a tax-file number? Do I need an ABN? so yeah, my concern is bassically that the money I make tutoring is counting toward the quota needed for proving I'm independant.
 

braindrainedAsh

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If you want it to count towards your earnings to get YA you should probably get an ABN (it's really easy, you just apply online). Just be careful though, because it means you will have to pay tax on any of your earnings at the end of the financial year. Also, you need to keep documentation in order to prove your earnings to centrelink. You should probably contact centrelink and get them to tell you exactly what they will require as proof of your earnings as a self employed person, because you don't want to earn the money but then not have the proper paperwork.
 

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