Does anyone run a business as their second income?

[Tom_1569]

Just wondering if anyone runs their own business as a second income and if so could answer some questions.

I currently work full time but would like to earn some extra money, by either after hours support or hire of equipment, both of which I can easily do.
My questions are because it will be my second income will my tax be rediculously stupid, or is it different because its a personel business?
Obviously I have to pay tax, is there anything else, do I have to contribute to super seeing as my primary job already contributes to super?
Am I correct in thinking I can run under an ABN number and do not require a business name?
Can I run two different things under one ABN, i.e Computer support and machinery hire.

Whos the best to go through for insurance?

If I was to start it with in the next few months I would be aiming to clear 300-400 a week after tax on my second job. It is merely something I want to do to cover my living expenses and save my primary income for a house deposit.

Any thoughts, suggestions etc welcome, its all new to me, but be an idea for a long time.

[minux]

Umm, Income tax is really no different, you just cannot claim the tax free threshold. So effectivley you pay the same tax as you would if you earnt more in your job. You do not have to contribute to super, thats your choice, to minimise your taxable Income, I would pay super. You can run under an ABN as a sole trader.
As for insurance, I just have Professional Indemnity, I have no use for anything else at this point in time as I am covered under agreements with companies I work for in my contracts on their sites.
Earning under 75k you do not have to claim GST, however, that said it means you cannot claim gst credits for purchases etc.

Best bet is to spend 500-600 on a good small business accountant who will go through everything with you. Check out flying solo, GREAT resources, Small business forums Australia - where solo & micro businesses connect

Good luck with it!! I started with similar in mind as you, however, it was more to get my name out more. Now have 3 customers and clearing 1500 week lol. It is almost out of control.

[Bravotwozero]

What do you do Minux?

[minux]

What do you do Minux?

Training and auditing at various Transport/Logistic companies

[Tom_1569]

Umm, Income tax is really no different, you just cannot claim the tax free threshold. So effectivley you pay the same tax as you would if you earnt more in your job. You do not have to contribute to super, thats your choice, to minimise your taxable Income, I would pay super. You can run under an ABN as a sole trader.
As for insurance, I just have Professional Indemnity, I have no use for anything else at this point in time as I am covered under agreements with companies I work for in my contracts on their sites.
Earning under 75k you do not have to claim GST, however, that said it means you cannot claim gst credits for purchases etc.

Best bet is to spend 500-600 on a good small business accountant who will go through everything with you. Check out flying solo, GREAT resources, Small business forums Australia - where solo & micro businesses connect

Good luck with it!! I started with similar in mind as you, however, it was more to get my name out more. Now have 3 customers and clearing 1500 week lol. It is almost out of control.

Thanks Minux.
That makes alot more sense about the tax, mums partner was trying to explain some 47% crap to me, which made no sense.
I have an appointment with my accountant next month for tax, and plan on running over this with him then, just want to make sure my plan is feasable to begin with.
That link has heaps of information, got lots of reading to do
Cheers.

[gopher]

i worked as a sole trader for 2 days a week for 5 years and as an employee for 3 days a week and the best advantage for me were the tax deductions.
the tax office would estimate how much tax i would have to payup front every quarter.they would use the previous years taxable income to work it out even though my money would vary each week
that was a bitch but it was good at tax time though as i would always get a refund.
i just used my name for the ABN didn't worry about a company name.

[smokyJ]

Training and auditing at various Transport/Logistic companies

What kind of auditing do you perform Minux? Do you contract out as an internal auditor and are you trained as one? I've been looking into the internal audit world a lot of late (individually contracting myself as you do.) I did my time with one of the big four and think that there is a huge market that is untapped for smaller-scale audits like this.