Contracting Question

[Batten]

Hey guys i am in a position to do some afterhours desktop support contracting and was wondering what you think i should charge... it for casual work every once in a while for a company just starting up..

This is what i think my time is worth

$60per hour (inc gst) with a minimun fee of 3 hours inc travel time?

[Barfrangipani]

Will you be on call 24/7? That takes its toll, you can't go out, you can't drink etc.

I'd work off a base rate for being on call, then bill for any work done on top. Others with more industry experience can tell you if this is workable, and what a good rate is

[Batten]

no wont be on call, the company is in melbourne and they have one or two perth clients, its just when they cant fix a issue remotley

[Sentry]

I wouldn't bother with it. After hours call out work kills your life and for one or two clients, its not worth being on call.

[Batten]

yeah, im not really worring about is ruining my social life or preventing me drinking as im not expected to fix it on the spot. i was more wondering if im asking the right about of cash and min charge time?

[Sentry]

I wouldn't get out of bed for less than $80 per hour, min 3 hours and a base $150 per week for being on call. Given that you only have two clients, hit them right up. It has to be worth your time and the effort that goes with not having a social life

[xphread]

why inc GST?

If you are not earning over $75K per year from the tax file number you are using to charge them, GST isnt required.

[Sentry]

Are you sure thats correct xphread? I thought you had to charge GST on all goods and services.

[Thomas Crown]

Are you sure thats correct xphread? I thought you had to charge GST on all goods and services.

Nope, but you need to make the decision early on whether you're going to or not.

I'm not sure what the limits are these days though

[xphread]

Are you sure thats correct xphread? I thought you had to charge GST on all goods and services.

Positive. (just started my own business and have recently attended about 4 workshops run by the ATO).

You are not legally allowed to charge GST if you are not registered for it.
You arent required to register for GST unless you (the ABN/TFN you are using) is reasonably expected to earn over $75,000pa.

[Jollie]

xphread is right.... you are only required to be registered for GST if your turnover is $75k, below that and you have the choice.

[Batten]

wow this is getting confusing, im not earning over 75 grand a year and prob wont.
do i need to get a abn or can i use my normal tax file number? i am being hired as a contractor.

[Jollie]

You will need an ABN as the people you contract to will have to withhold 46.5% of what they pay you if you don't. Given it sounds like you will only be doing a small amount of contracting at least to start with i would suggest not registering for GST as the hassles of doing business activity statements given the small amount of income wouldn't be worth it.

If you decide not to register for GST, all you need to do is clearly indicate this on the your invoices so that your "employers" don't claim it.

Just remember the ABN & GST are two different things you'll need the ABN to operate your business however will have the choice of charging GST if you contracting income is below the $75k threshhold.

[xphread]

As above, you will need to apply for an ABN (as a sole trader... meaning you dont need a business name or anything, just use your personal name.)

Dont bother registering for GST. (otherwise you will have to charge an extra 10% or lose 10% of what you charge the employer)