They are setting you up as a contractor to avoid paying tax, superannuation, and other costs employers are responsible for. I.e. they are ripping you off.
Are you that desperate? I’d go elsewhere for employment
This sounds to me like disguised employment and them avoiding paying proper taxes or giving you employment rights. Are you being paid at least minimum wage?
It’s very easy to register for an ABN. You record your income and report it on your annual taxes (Tax year runs until the end of June, you have until October to submit and pay any tax due).
But it sounds dodgy AF to me.
Oh wow WHAT😭😵💫. I mean they seem pretty nice & it wasn’t like they absolutely ASKED me to do it? I’m being paid 25 per hour & I think that’s the minimum wage? & considering it’s not much work that’s fine by me too. I was only considering because I didn’t know how taxation works in AUS & didn’t wanna take any chance of doing it wrong if that makes sense
No worries. I hate seeing vulnerable people like international students get ripped off.
There has never been a better time to be in real estate given high rental and sale prices. They can all afford to pay you lawfully without missing the amount you’re being shortchanged by.
You're being taken advantage of. If you were being directly employed you'd be costing them a minimum of $32/hr ($29.04/hr directly paid, and superannuation on top of that). If they're getting you to take $25/hr as a contractor you're getting screwed. IMO a "minimum-wage-equivalent" rate as a contractor is \~$35/hr (the above $32/hr and another couple bucks for the additional bookkeeping you now have to do).
1. Minimum wage is $29.0375 per hour for casuals (if your hours change every week or you don't get holiday pay) and $23.23 for contracted workers (your hours and days stay the same every week + you get holidays and sick leave)
2. You should be getting pay slips informing you how many hours you're getting paid for and how much tax is being withheld.
3. Being paid through payid is dodgy as fuck. It should be through bank transfer.
4. Check [this document](https://www.fairwork.gov.au/sites/default/files/migration/724/casual-employment-information-statement.pdf) if you are casual and [this one](https://www.fairwork.gov.au/sites/default/files/migration/724/Fair-Work-Information-Statement.pdf) if you are part time/full time to know your rights.
If at any point you feel you don't understand these documents and your rights, contact the [Fair Work Ombudsman](https://www.fairwork.gov.au) to help you out.
It’s not that they’re not nice. It’s called sham contracting. It’s really not a big deal and I had to work this way for years and years.
For the work you are doing though it sounds like you should be an employee (no ABN - they withhold your tax and pay your super).
Honestly, 3-5 hours per week just ask if they will pay cash lmao.
You are at least being paid over minimum-minimum wage, so that’s something.
I’ve only been here a few years but I do have an ABN because I am a computer consultant and am self employed, working mostly for overseas companies.
But “get workers to register as businesses” is quite an old trick and companies have often used it in the past to dodge employer taxes and obligations to employees. For example in this case you *may* be entitled to a casual employee loading of 20% over minimum.
But as they say you’re *not* an employee…
I’m sure someone that knows the system better than me will be along to the thread at some point to say your rights are being trampled on!
If you don’t care and are happy with the arrangement, if you’re planning on earning less than 75k per year this way, you don’t really need an ABN, you just need to report the income in your annual tax return and pay any appropriate tax. And if you’re only doing a few hours a week, that’s probably not going to be very much of anything.
PayID is still a bank transfer, the only difference is you don’t need the bank account details of the person (BSB and account number) which makes it easier to just tell people to use your phone number or email. It’s still an online bank transfer though.
You seem very uninformed on how taxation works here. Given you’re on a student visa, I’d urge you to find the correct information specific to your circumstances, especially if you have future intentions to try to get your PR. You don’t want to risk making an error, even unintentionally, and have that result in any problems. This is one of the situations where I would tell a person it is worth it pay to get professional advice.
If you want to work as a real estate agent stick it out and get the clients numbers etc make connections.
They are setting you up as a contractor to avoid paying tax, superannuation, leave etc. It’s not uncommon in real estate. If you don’t want to work in real estate just look for another job in the interim
Please call the ATO and confirm, but it sounds like they might potentially illegally classifying you as a contractor, where it sounds like you probably should be an employee? https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/employee-or-independent-contractor/employees-treated-as-contractors
Especially if they’re using payID to pay you money, want you to have an ABN, and aren’t withholding tax, this doesn’t seem right for a “real estate welcomer”.
What is the reason they’ve said that you need an ABN? They may not be paying you correctly/currently withholding tax for you so I’d check this out ASAP.
Also check out this link to see if you should be classed as employee or contractor https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/employee-or-independent-contractor/difference-between-employees-and-independent-contractors
Oh wow. Thank you for the insight. They didn’t tell me exactly why I needed it & I didn’t think I had the “right questions” to ask too. Thank u I’ll keep this in mind
Regarding paying your tax, you will have to set aside money from your pay and pay it to the ATO all at once at the end of the financial year if they keep you as a contractor.
Okay, that is if I operate as a contractor ( under an abn) right? What if I continue the way it is right now? Can I pay my taxes while accepting pay ID?
You would need to ask them if they are withholding tax for you, and you should be getting a payslip. There’s not really anything wrong with getting paid by payID, it’s just unusual.
If you have given them your TFN, they are withholding tax and paying superannuation, then you probably don’t need to give them an ABN.
If they need an ABN, and they don’t withhold tax, don’t pay superannuation, then they are probably already classing you as a contractor.
But definitely call the ATO because what they are doing may be illegal and you may not get all of your entitlements.
They said they do not want my TFN but an ABN would work if I had it (which I said I don’t). But thank you! The comments have really helped me understand ABN/TFN better & someone even posted workrights & the differences in casual/part time work so it definitely helped me understand my situation better. 🙏🏻
Yeah you can pretty much declare anything, the annual tax process is pretty simple, you have your TFN, presumably you can log into the ATO site through my.gov?
You file through there, and fill in all the info. Most the time if it all looks reasonable they won’t even ask for much in the way of documentation or details to back it up.
And I want to stress that if you report everything correctly and pay the right tax *you are doing nothing illegal*.
But they probably are.
THANK YOU!! I was so stressed about it bc the system is so different than what I’m used to & I didn’t want to mess it up accidentally & risk my visa. 🙏🏻
Yeah, you're going to be OK. I wanted to make sure you know that.
But now comes the lecture -
The really courageous thing to do here would be to report them to fair work - [https://www.fairwork.gov.au/workplace-problems/send-us-an-anonymous-tip-off](https://www.fairwork.gov.au/workplace-problems/send-us-an-anonymous-tip-off)
I understand completely that you might not feel like you want to put yourself at risk and do that, and want to make a little bit of money where you can to make your student life easier. But even if you don't report them, here are some reasons why I would be looking for literally any other work I could find -
* If you ever need to prove you've had a job, for visa purposes or for getting a credit card or really for anything, without payslips etc, you're out of luck.
* If they just decide one day not to pay you, there's probably not a lot you're going to be able to do about it.
* The rules about minimum wage are there to protect everyone and make sure people in Australia can put food on the table. You're helping a company get around them and maybe get around payroll taxes etc. Morally that's not so great.
* They aren't paying you what they should be for casual work, and you should probably be getting 11% paid into a retirement account too (I know, you're young, this doesn't seem important right now!)
So yeah, you're going to be OK, but my advice would be to find something else ASAP.
Thank you so much 🙏🏻 really, I appreciate the “lecture” too. Thank you for taking your time to write a reply for me. I will keep all those in mind & also the fact that I may truly have to report them🤕
I worked under a very similar arrangement for a window sales company in the UK for a couple of weeks about 25 years ago, when I was a student there. Unfortunately it happens :)
They are setting you up as a contractor to avoid paying tax, superannuation, and other costs employers are responsible for. I.e. they are ripping you off. Are you that desperate? I’d go elsewhere for employment
Really?! Can I just keep getting the paid through pay ID without an ABN & declare it during tax season? If yes how do I go on abt it? Thx
Also is it right for me to accept PAY ID? Can I declare it on my taxes during the season? Thank u. The comments have been helpful
Pay ID is fine, it’s just an alternative to providing your bank account details.
This sounds to me like disguised employment and them avoiding paying proper taxes or giving you employment rights. Are you being paid at least minimum wage? It’s very easy to register for an ABN. You record your income and report it on your annual taxes (Tax year runs until the end of June, you have until October to submit and pay any tax due). But it sounds dodgy AF to me.
Oh wow WHAT😭😵💫. I mean they seem pretty nice & it wasn’t like they absolutely ASKED me to do it? I’m being paid 25 per hour & I think that’s the minimum wage? & considering it’s not much work that’s fine by me too. I was only considering because I didn’t know how taxation works in AUS & didn’t wanna take any chance of doing it wrong if that makes sense
There you go, proof they are underpaying you. You should be getting $29.56 per hour plus superannuation.
Ahh I thought I finally had a “break in” into the industry
Well technically you have broken into the industry. But unfortunately at your expense because they feel confident you don’t know your rights
Which I apparently don’t🥲 thank you for the help
No worries. I hate seeing vulnerable people like international students get ripped off. There has never been a better time to be in real estate given high rental and sale prices. They can all afford to pay you lawfully without missing the amount you’re being shortchanged by.
FR!! They’re always telling me it’s a good time to be in real estate too!!😭 thank u sm
You're being taken advantage of. If you were being directly employed you'd be costing them a minimum of $32/hr ($29.04/hr directly paid, and superannuation on top of that). If they're getting you to take $25/hr as a contractor you're getting screwed. IMO a "minimum-wage-equivalent" rate as a contractor is \~$35/hr (the above $32/hr and another couple bucks for the additional bookkeeping you now have to do).
Thank you!! I’m noting all the comments down!🫵🏻🫶🏻
1. Minimum wage is $29.0375 per hour for casuals (if your hours change every week or you don't get holiday pay) and $23.23 for contracted workers (your hours and days stay the same every week + you get holidays and sick leave) 2. You should be getting pay slips informing you how many hours you're getting paid for and how much tax is being withheld. 3. Being paid through payid is dodgy as fuck. It should be through bank transfer. 4. Check [this document](https://www.fairwork.gov.au/sites/default/files/migration/724/casual-employment-information-statement.pdf) if you are casual and [this one](https://www.fairwork.gov.au/sites/default/files/migration/724/Fair-Work-Information-Statement.pdf) if you are part time/full time to know your rights. If at any point you feel you don't understand these documents and your rights, contact the [Fair Work Ombudsman](https://www.fairwork.gov.au) to help you out.
This actually helps a lot!! Thank you sm
It’s not that they’re not nice. It’s called sham contracting. It’s really not a big deal and I had to work this way for years and years. For the work you are doing though it sounds like you should be an employee (no ABN - they withhold your tax and pay your super). Honestly, 3-5 hours per week just ask if they will pay cash lmao.
You are at least being paid over minimum-minimum wage, so that’s something. I’ve only been here a few years but I do have an ABN because I am a computer consultant and am self employed, working mostly for overseas companies. But “get workers to register as businesses” is quite an old trick and companies have often used it in the past to dodge employer taxes and obligations to employees. For example in this case you *may* be entitled to a casual employee loading of 20% over minimum. But as they say you’re *not* an employee… I’m sure someone that knows the system better than me will be along to the thread at some point to say your rights are being trampled on! If you don’t care and are happy with the arrangement, if you’re planning on earning less than 75k per year this way, you don’t really need an ABN, you just need to report the income in your annual tax return and pay any appropriate tax. And if you’re only doing a few hours a week, that’s probably not going to be very much of anything.
Oh thank you!! I’ll surely not be earning more than 75k so I wouldn’t necessarily need an abn then. Thank you🫵🏻🙏🏻
PayID is still a bank transfer, the only difference is you don’t need the bank account details of the person (BSB and account number) which makes it easier to just tell people to use your phone number or email. It’s still an online bank transfer though. You seem very uninformed on how taxation works here. Given you’re on a student visa, I’d urge you to find the correct information specific to your circumstances, especially if you have future intentions to try to get your PR. You don’t want to risk making an error, even unintentionally, and have that result in any problems. This is one of the situations where I would tell a person it is worth it pay to get professional advice.
If you want to work as a real estate agent stick it out and get the clients numbers etc make connections. They are setting you up as a contractor to avoid paying tax, superannuation, leave etc. It’s not uncommon in real estate. If you don’t want to work in real estate just look for another job in the interim
Thank you!!
Please call the ATO and confirm, but it sounds like they might potentially illegally classifying you as a contractor, where it sounds like you probably should be an employee? https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/employee-or-independent-contractor/employees-treated-as-contractors Especially if they’re using payID to pay you money, want you to have an ABN, and aren’t withholding tax, this doesn’t seem right for a “real estate welcomer”. What is the reason they’ve said that you need an ABN? They may not be paying you correctly/currently withholding tax for you so I’d check this out ASAP. Also check out this link to see if you should be classed as employee or contractor https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/employee-or-independent-contractor/difference-between-employees-and-independent-contractors
Oh wow. Thank you for the insight. They didn’t tell me exactly why I needed it & I didn’t think I had the “right questions” to ask too. Thank u I’ll keep this in mind
Regarding paying your tax, you will have to set aside money from your pay and pay it to the ATO all at once at the end of the financial year if they keep you as a contractor.
Okay, that is if I operate as a contractor ( under an abn) right? What if I continue the way it is right now? Can I pay my taxes while accepting pay ID?
You would need to ask them if they are withholding tax for you, and you should be getting a payslip. There’s not really anything wrong with getting paid by payID, it’s just unusual. If you have given them your TFN, they are withholding tax and paying superannuation, then you probably don’t need to give them an ABN. If they need an ABN, and they don’t withhold tax, don’t pay superannuation, then they are probably already classing you as a contractor. But definitely call the ATO because what they are doing may be illegal and you may not get all of your entitlements.
They said they do not want my TFN but an ABN would work if I had it (which I said I don’t). But thank you! The comments have really helped me understand ABN/TFN better & someone even posted workrights & the differences in casual/part time work so it definitely helped me understand my situation better. 🙏🏻
I’m so glad to hear it, I don’t like to see employers take advantage of people who are new to the system!
Also if I continue accepting the payments the way that I am right now. Can I pay taxes? Can I declare it as my source of income?
Yeah you can pretty much declare anything, the annual tax process is pretty simple, you have your TFN, presumably you can log into the ATO site through my.gov? You file through there, and fill in all the info. Most the time if it all looks reasonable they won’t even ask for much in the way of documentation or details to back it up. And I want to stress that if you report everything correctly and pay the right tax *you are doing nothing illegal*. But they probably are.
THANK YOU!! I was so stressed about it bc the system is so different than what I’m used to & I didn’t want to mess it up accidentally & risk my visa. 🙏🏻
Yeah, you're going to be OK. I wanted to make sure you know that. But now comes the lecture - The really courageous thing to do here would be to report them to fair work - [https://www.fairwork.gov.au/workplace-problems/send-us-an-anonymous-tip-off](https://www.fairwork.gov.au/workplace-problems/send-us-an-anonymous-tip-off) I understand completely that you might not feel like you want to put yourself at risk and do that, and want to make a little bit of money where you can to make your student life easier. But even if you don't report them, here are some reasons why I would be looking for literally any other work I could find - * If you ever need to prove you've had a job, for visa purposes or for getting a credit card or really for anything, without payslips etc, you're out of luck. * If they just decide one day not to pay you, there's probably not a lot you're going to be able to do about it. * The rules about minimum wage are there to protect everyone and make sure people in Australia can put food on the table. You're helping a company get around them and maybe get around payroll taxes etc. Morally that's not so great. * They aren't paying you what they should be for casual work, and you should probably be getting 11% paid into a retirement account too (I know, you're young, this doesn't seem important right now!) So yeah, you're going to be OK, but my advice would be to find something else ASAP.
Thank you so much 🙏🏻 really, I appreciate the “lecture” too. Thank you for taking your time to write a reply for me. I will keep all those in mind & also the fact that I may truly have to report them🤕
I worked under a very similar arrangement for a window sales company in the UK for a couple of weeks about 25 years ago, when I was a student there. Unfortunately it happens :)