As someone working in the hospitality industry you could be considered an employee or a contractor. Different tax rules apply for employees and contractors so it is important to be aware of this. If you are not sure whether you are an employee or a contractor you can find out more information here.
As a contractor you would be required to have an Australian Business Number (ABN) and you might be required to register for GST. If you earn income as a contractor you still need to include this in your income tax return as business income.
As someone working in the hospitality industry you might also be able to include some deductions in your income tax return if they related to earning your income. You might be able to claim expenses such as:
● Equipment costing $300 or less where you use it mainly for work
● Cost of a uniform where you are required to have protective or occupation specific clothing (e.g. restaurant shirts with logo or chefs uniform)
● Cost of dry cleaning for occupation specific or protective clothing. Note - this cannot be claimed for non-occupation specific or non-protective clothing
● Cost of self education/training or eligible courses where you have paid for the course up front and it relates to maintaining or improving skills for your current job, or results in (or is likely to result in) increased income from your current role. Some examples might include first aid training for a designated first aid officer, RSA renewal for a bartender, Cert IV in Commercial Cookery for a chef.
If you are an employee your employer will generally be required to withhold tax from your earnings. You would then need to include your salary and wages and the amount of tax withheld in your annual income tax return.
To help you complete your income tax return Airtax is offering $20 (more than 20%) off when you complete your 2017 return through Airtax. Discount coupon code "Supp20" is valid until 31 August 2017.
Airtax is an online lodgement service where you can complete your tax lodgements and also get an ABN for free.