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Will I need to pay taxes for my services and do I need an ABN?

Will I need to pay taxes?

As Mad Paws is not a tax accountant, we do not have the knowledge nor the services to provide advice about paying taxes. As with all income generation, tax obligations may arise, dependent on your specific tax situation. You will need to follow state and federal laws relating to reporting income. Mad Paws is not an employer of any pet sitter and therefore, will not make any tax declarations, deductions or tax payments on your behalf. 

Though if you use PayPal for gaining money for your services, it will handle your services.

Do I need an ABN?

This depends on whether you class the bookings you take through Mad Paws as a hobby or whether you intend to build an enterprise. For more information regarding how to determine whether you are just doing a hobby or running a business, please follow this link to the ATO page which provides lots of useful information. The most important factor in determining whether you need an ABN, is how much you intend to earn using the sharing economy. If you decide to start a small business and your turn over is over $75,000 per year, then you will also need to register for GST. 

If you have any questions, please contact your personal tax accountant or the ATO via their website or on their small business information line: 132 866.

Ellie is the author of this solution article.

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