Sub-contracting

**Marley&Me** · February 17th, 2015, 01:47 PM

I have asked previously about this, but can't find the thread.
DH will possibly be working for a company as a sub-contractor. Apparently he is covered at job sites by the employers insurance so that won't be a problem. I understand we need to activate DH ABN (he has one but it's deactivated) and get relevant programs to record/log tax, super, annual leave etc. Also register BAS statement? Will get finer details closer to start date.
So what I'm asking is there anything else that we need to know? Also how does being a sub contractor affect going for bank loans i.e. future mortgage?

**Beautiful Disaster** · February 17th, 2015, 07:56 PM

Subbies will need 2 years financials doe bank loans

we just going through this process too. My DH just has to pay his tax/gst who he is working for is paying his super and also his insurances

**Marley&Me** · February 17th, 2015, 08:03 PM

Thanks Beautiful Disaster. 2 years? Wow, that totally sucks

Don't really understand that as no jobs are secure forever. Understandable if your a subbie that has to find your own work. But if the work is already there for you it shouldn't be a problem. Well it's definitely something to consider I guess, that piece of info alone will change a great deal of plans.

**Foss** · February 17th, 2015, 08:06 PM

If you haven't already, it would probably be good to see your accoutant to make sure everything is set up to maximise your chances for loans etc. It is so much easier to establish things how you need them rather than trying to change and retrofit the business model after the fact

**Beautiful Disaster** · February 17th, 2015, 08:07 PM

Originally Posted by Tasha

Thanks Beautiful Disaster. 2 years? Wow, that totally sucks

Don't really understand that as no jobs are secure forever. Understandable if your a subbie that has to find your own work. But if the work is already there for you it shouldn't be a problem. Well it's definitely something to consider I guess, that piece of info alone will change a great deal of plans.

Yep we were in the bank opening a new account today and asked the question.

**Marley&Me** · June 10th, 2015, 06:59 PM

This thread is old, but I wanted to add a question. Dh new boss works for Simmonds Homes. DH is sub contracting for him. I will be seeing an accountant next week some time (when I can afford it) But I am trying to draw up a budget and I am unsure of superannuation.
Do we take super out of his wage because we are using an ABN? I have asked around and nobody seems to know. Judging by his hourly rate if we take out tax and super (and possibly gst??) He will be taking home about half his hourly rate. Which would be about $17 an hour

Is this right? I sure hope not...

**Livinthedream** · June 10th, 2015, 07:43 PM

As far as I am aware (we are both self employed our whole working lives) super is optional if you are self employed. (You don't have to pay yourself super)
Gst is only chargeable/payable if you are turning over in excess of $75k
You may find that it is not worth dealing with gst if you don't have a heap to claim.
It's a PITA to do.
You would only nee to take out GST if you are charging it.