Home Care Heroes cannot provide individual information or guidance on taxation, some helpful general information is below.
Contractors are responsible for charging Goods and Services Tax (GST) in respect of the services they perform, and they are responsible for accounting for the GST they collect by lodging a Business Activity Statement periodically.
However, there are many exemptions which may apply to you in respect of your GST obligations.
Is your GST Turnover under$75,000?
Your GST Turnover = gross business income (not your profit).
If your GST turnover is less than $75,000 then you do not have to be registered for GST.
Is your GST Turnover over $75,000?
If yes, you will need to register for GST.
However, A New Tax System (Goods and Services Tax) Act (1999) (GST ACT) specifies types of services which are GST exempt.
If you are providing services which fall into one of the following categories then the services you are providing are GST exempt.
Section 8-30(3) of the GST Act states “A supply of *home care is GST-free if the supply is of services:
(a)that are provided to one or more aged or disabled people; and
(b)that are of a kind covered by item 2.1 (daily living activities assistance) of Part 2 of Schedule 1 to the *Quality of Care Principles.”
All HCH members are either aged is disabled, thus item (a) is satisfied.
You will need to satisfy yourself whether you are providing the following services, which will satisfy item (b):
Quality of Care Principles
Personal assistance, including individual attention, individual supervision, and physical assistance, with the following:
a)bathing, showering, personal hygiene and grooming;
b)maintaining continence or managing incontinence, and using aids and appliances designed to assist continence management;
c)eating and eating aids, and using eating utensils and eating aids (including actual feeding if necessary);
d)dressing, undressing, and using dressing aids;
e)moving, walking, wheelchair use, and using devices and appliances designed to aid mobility, including the fitting of artificial limbs and other personal mobility aids;
f)communication, including to address difficulties arising from impaired hearing, sight or speech, or lack of common language (including fitting sensory communication aids), and checking hearing aid batteries and cleaning spectacles.
Is your GST Turnover over $75,000 and you are performing services which are not described above?
If the services you are providing do not fall within one of the above categories, then GST may be chargeable on the amount of fees you receive in respect of those services.
You should contact email@example.com at HCH to discuss your situation.
Other Tax Obligations
You may be required to pay income tax on the other money which you receive from performing your services.
We strongly recommend
you engage a tax agent to assist you with the preparation with your tax return each year (to ensure that you are correctly claiming deductions); and
you budget and save for the likely income tax you will have to pay.
Remember - the amount of tax will depend on the amount of income you earn not only through the platform but also from other sources.