Taxation Changes?
04/03/10 16:24 Filed in: news Money Matters
The Rudd government is trying to make significant changes to the rules affecting small business and contractors. One of the most alarming is re-enforcing the 80/20 rule. Just in case you don’t know what this is it is the rule that says if 80% of your income comes from one employer then you are not a contractor at all you are an employee. The outcome of this is that your entire taxation profile changes in line with employees. The ramifications of this are profound ... what if you are a contractor that lands a very lucrative contract which runs for a few months and produces 85% of your income for a year . This means that the whole of your activities for the year are judged under employee rules - even though you have been a bona fide contractor.
At the very least every contractor and small business person should pay attention to the changes that Nick Sherry is proposing - some spectators such as Robert Gottliebsen speculate that the small business lobby could oust the government if changes like this are attempted.
At the very least every contractor and small business person should pay attention to the changes that Nick Sherry is proposing - some spectators such as Robert Gottliebsen speculate that the small business lobby could oust the government if changes like this are attempted.
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