# Tax for Independent Contractor on Working Holiday Visa



## thedlake (Dec 20, 2012)

Hello,

I'm on a working holiday visa here in Sydney Australia. Been on it for a year now and am on a bridging visa waiting for my Perm Residency/Temp Residency to be granted (820/801 Spousal as I'm married to an Aussie woman).

I've just taken a job as an Independent Contractor for a company where I just invoice them each week and get the money deposited into my Australian Bank Account. I have to deal with my taxes, etc. I don't have an ABN (I don't think I can get one since I don't have a Perm Residency... I could be wrong   ) I signed a form with the company stating that I'm not employed by them and have to take care of my taxes and if they get audited (which they say has never happened in their 14 years) then I would have to pay 51% of my earnings (YIKES!!   ). They don't report my earnings to the Australian Tax Agency but... if they did come in they could see all of my invoices and then I'd have to pay back taxes of a really high amount.

I'm all about paying taxes, etc. but I'm really confused as to who I should be paying and what percentage since I'm on a working holiday visa and I don't have an ABN. 

Also to throw another wrench in this, since I'm on the working Holiday Visa, does the 6 month employment limit count with an Independent Contractor since I'm not on the books? I'm really confused about this... any information would help. 

Thanks!


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