What's an ABN?
An Australian Business Number (ABN) is a unique number used to identify Australian businesses.
The definition of "businesses" includes single person sole traders all the way up to corporations with thousands of people.
Basically, if you make money that isn't paid by an employer, you're legally required to have an ABN. This includes things like babysitting or mowing the lawns, as well as tutoring with MyTuition.
Why does this apply to me?
You work with MyTuition as an independent contractor rather than as an employee.
This means things like:
- You're free to accept or decline students as you wish
- You're free to set your own hours
- We don't deduct PAYG from your pay
- You can claim back expenses such as travel expenses from the government
- You're free to take on your own students from other sources, or work with other tutoring companies
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From the perspective of the ATO, you're in an independent business trading as a sole trader.
When applying for an ABN, it asks you a number of questions to assess your eligibility for an ABN. We've done our best to help you understand these questions below:
Genuinely running your own business
Basically this means that you're actually providing tutoring services and earning money. You're doing this by running an independent tutoring business, and we contract students to you. You can take on work from multiple sources, e.g. MyTuition, other tutoring companies, independently.
Paying your own income tax and GST directly to the ATO
We don't take PAYG out of your pay. You're required to include tutoring income as income at the end of each financial year (although in most cases, our tutors will earn under the threshold and this won’t impact them)
Sourcing your own clients by, for example, advertising your services
We are a marketplace where you advertise your service and we match you up with students. You are free to accept and reject students as you wish. In addition, you may choose to tutor independently and source your own clients.
Able to delegate work to others if you choose without approval from an ‘employer’
This is permitted, as long as that person has been approved by us and meets our safety checks.
Quoting for work, including setting or negotiating your own prices
In some situations, rates are negotiable. You are also free to accept or reject work as you wish which in itself is a form of negotiation.
Invoicing for work
In logging your hours, an invoice is created and sent to us.
Maintaining a business bank account separate from your personal account
This is not a requirement for a sole trader.
Paying for your own business insurance such as public liability.
We recommend this for all our tutors.
I am not applying just because I have been asked to get an ABN as a condition of employment
We are not your employer, nor is there an offer of employment. As an independent tutor, you should have an ABN to take on work.
How do I get an ABN?
It takes 5 minutes and is free of charge. Just visit the below link.
Common places people get stuck:
Entity type
"Individual (Sole trader)"
What is the individual's/sole trader’s name?
Everything here relates to your personal details.
Business information/address
This is your personal details and address. You do not have more than one business address in Australia.
Reason for application
"to receive payment for services"
Click below to apply for an ABN
https://abr.gov.au/For-Business,-Super-funds---Charities/Applying-for-an-ABN/