Hi,
I'm on disability support pension so I don't want to lose that but I do want to make some money to put more into savings.
I'm thinking of being a food courier and I need a ABN? That means I'll have to pay tax and stuff right?
I'm not sure how any of this works and if this is a good idea. Is anyone in same boat and knows this?
I'm also in Dandenong North, no clue if this is a good place for orders.
there is many. but worried about this abn, having a second bank cost fees too right so im not sure if this is worth it.
second bank cost fees too right.
No it doesn't. There's plenty of banks that don't require a minimum income/deposit to waive fees. There's even some with physical branches e.g. NAB
You don't need a second bank account as a sole trader because as a sole trader all your business money is your own money, it doesn't need to be kept seperate at all. Only think you really ought to put aside is your tax obligations, and you should think about investing some of it because you aren't paid any super as a sole trader.
And like kerfuffle says, NAB offers bank accounts for free if you really wanted to keep it all seperate for some reason.
because you aren't paid any super as a sole trader.
you pay it yourself…
not worth it though unless your marginal tax rate is > 15%.
If in doubt, ask an accountant
Nah OzFinancialAdvice
Give it a go. It could be a good way to test your abilities. You might find you can't do it for more than a few hours a week depending on your disability. Or you might find that being a delivery driver suits you well and can think about doing it full-time and get off the DSP, there's a few niches in delivery driving that won't be replaced by Indians or automation anytime soon, such as pathology deliveries. You might find you enjoy delivering.
What do Indians have to do with anything?
Cheap labour willing to work hard, which lowers the compensatory value for delivery driving compared to if Uber/Menulog/Amazon only had second generation Australians to work with. If there's thousands of migrants willing to do the exact same job cheaply then it means the only way Australians with deep roots here can do it is for the same cheap price and conditions.
I think you're being a touch racist
@Quantumcat: Agree, could have just said migrant workers without calling out an individual country. There are plenty of migrant workers from other countries (a lot of which are in that region).
But it's ok because upvote right?
@Tnetennba: Yeah, that would be the pc thing to do..Yes
But when you understand that over 90% of delivery drivers are from an Indian descent, I don’t think it’s at all rude to make that generalisation.
Also, it’s always about the intent rather than the content.
If there's thousands of migrants willing to do the exact same job cheaply
You mean ‘thousands of migrants taken advantage of by unscrupulous employers looking to pay less than minimum wage by way of sham contracting arrangements’?
and I need a ABN? That means I'll have to pay tax and stuff right?
You need to put in a tax return.
You'll only pay tax if you earn more than the tax free threshold.
If you don't put in a tax return, your ABN will be cancelled.
‘Menulog or Doordash’
Why not both ? Nearly all professionals do. As it’s hard to make enough money off the back of just one app.
Tax implications ?
As far as I know, delivery drivers don’t need to pay GST unlike taxi/Uber drivers. But you’ll still need to pay income tax on your earnings.
You lodge your income tax returns annually and hence is a one time charge.
Especially around Dandenong, you can find plenty of accountants that’ll do it for cheap.
Make sure you are aware of how much you can earn before your DSP starts reducing too.
See here for more information: https://www.servicesaustralia.gov.au/working-while-youre-get…
This, menulog/doordash counts towards the disability pension calcs just like any other income. Would be far better off just getting a normal job at the moment, considering the hike in petrol prices, how crap menulog/doordash are and the number of job openings there are at the moment.
If OP could just get a normal job they probably wouldn't be on DSP.
By "normal" I meant "not gig economy". Disability Employment Services are a thing and there are incentives to hire people with a disability. Considering the shortage of workers, more employers should be taking it up.
Uber eats offers $500 to $750 bonus for first 30 delivery for new uber eats delivery driver.
Didi offers $1500 for new drivers after finishing 60 trips.
Been grinding on these bonuses for last 2 months and just bought new TV (LG 55 oled :) , and now every now and then I do couple of hours and fill my fuel tank almost for free. Good luck on your journey!
ABN required, yes.
Complicated, no.
Good idea? Surely better than working for an employer because you have control over how often you can work.
Your main decision - are you happy to earn enough that your DSP is reduced or not ($150/fn max I think)
Do you have a working credit? That's another temporary buffer if you earn above that $150/fn.
Your personal circumstances matter, perhaps you are fine to earn enough to replace some of your DSP but not lose healthcare/utility concessions etc? Your affair, mate.
**There won't be any tax bill unless you decide to earn enough to suspend you from DSP. Your talking $10k a year at least. DSP gets a $2230 tax credit each year.
Cross that bridge if/when you get to it.
Also, once you apply for and recieve an ABN, it's yours for life, just like your TFN. "Cancelling" is just an ATO term but it's really just a de-activation until you need it again.
If in doubt, ask an accountant, for best advice, however I am sure there will be plenty of peple that can help. Normally, you don't pay tax until #18k per year. Yese you will need an ABN.
Have 2 seperate bank accounts - One for Incoming/outgoing, plus 1 put aside for tax.
Good Luck.
Are there many Restaurants in the area? Join the delivery service, as if placing an order and check.