THE GIG ECONOMY

Tax and Accounting Tips for Freelancers

The gig economy in Australia is booming, and chances are you’ve already come across it, even in a place as cosy as Hobart. Gig workers are freelancers offering services on platforms like Airtasker or running a small business, and more and more people are embracing the flexible work opportunities that this provides.

But what exactly is freelancing? It’s simply when you work for yourself, often on a project basis, and you’re not tied to one employer. Freelancing work could range from someone providing creative services like graphic design to offering hands-on tasks like gardening or home repairs and more.

Many website builders, designers, content and article writers, photographers, and consultants in Hobart are freelancing without even realising it. If you work independently, juggle multiple clients, and manage your own time and income, you’re likely part of the gig economy. Freelancing offers freedom and flexibility, but it also brings new responsibilities when it comes to managing your taxes and finances.

That’s where Hills Accountants in Hobart can help. They’ll ensure you understand your obligations while maximising deductions and keeping your finances running smoothly.

Tax and Accounting Tips for Freelancers

Keep Track of All Your Income

Freelancers often juggle multiple clients, which means payments can come from a variety of sources. Whether you're earning through a job-finding platform or directly from clients, it’s important to keep detailed records of every payment you receive. Even smaller tasks need to be declared as taxable income. Good record-keeping will not only keep you compliant but also make tax time a lot less stressful.

Understand Your Deductions

One of the perks of freelancing is being able to claim deductions for business-related expenses. This could include your home office setup, internet, work equipment, and software subscriptions. As long as the expense directly relates to earning your income, it’s usually deductible. However, knowing exactly what you can and can’t claim can be tricky, which is why a chat with your accountant can be invaluable.

Set Aside Money for Tax

Unlike regular employees, freelancers don’t have tax automatically deducted from their income. This means you’ll need to take charge of setting aside a portion of your earnings for tax. A good rule of thumb is to save about 25-30% of each payment. That way, you won’t be caught off guard when tax time rolls around.

Stay On Top of Superannuation

Freelancers don’t have the luxury of employer-paid super contributions, so it’s important to set up your own superannuation contributions. Even small regular contributions can help you build up your super over time. Plus, making voluntary contributions might come with tax benefits, so it’s worth discussing this with your accountant.

Consult with an Expert

Freelancing can be financially rewarding, but the complexities of managing taxes, super, and deductions can add up quickly. This is where Accountants in Hobart like Hills Accountants can make a real difference. Having a professional help you stay on top of things not only saves time but also ensures you're making the most of your tax benefits while staying compliant with the ATO.

Final Thoughts

Being a freelancer in Hobart’s growing gig economy offers flexibility and freedom, but with it comes the need for careful financial management. Whether it’s keeping track of income, setting aside tax, or claiming the right deductions, managing your finances well is crucial to long-term success. And when in doubt, remember, the team at Hills Accountants in Hobart is always here to lend a hand.

For more information, email us today at admin@hillsaccounting.com.au or call us on 03 62737800

Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs.

For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.

The gig economy in Australia is booming, and chances are you’ve already come across it, even in a place as cosy as Hobart. Gig workers are freelancers offering services on platforms like Airtasker or running a small business, and more and more people are embracing the flexible work opportunities that this provides.

But what exactly is freelancing? It’s simply when you work for yourself, often on a project basis, and you’re not tied to one employer. Freelancing work could range from someone providing creative services like graphic design to offering hands-on tasks like gardening or home repairs and more.

Many website builders, designers, content and article writers, photographers, and consultants in Hobart are freelancing without even realising it. If you work independently, juggle multiple clients, and manage your own time and income, you’re likely part of the gig economy. Freelancing offers freedom and flexibility, but it also brings new responsibilities when it comes to managing your taxes and finances.

That’s where Hills Accountants in Hobart can help. They’ll ensure you understand your obligations while maximising deductions and keeping your finances running smoothly.

Tax and Accounting Tips for Freelancers

Keep Track of All Your Income

Freelancers often juggle multiple clients, which means payments can come from a variety of sources. Whether you're earning through a job-finding platform or directly from clients, it’s important to keep detailed records of every payment you receive. Even smaller tasks need to be declared as taxable income. Good record-keeping will not only keep you compliant but also make tax time a lot less stressful.

Understand Your Deductions

One of the perks of freelancing is being able to claim deductions for business-related expenses. This could include your home office setup, internet, work equipment, and software subscriptions. As long as the expense directly relates to earning your income, it’s usually deductible. However, knowing exactly what you can and can’t claim can be tricky, which is why a chat with your accountant can be invaluable.

Set Aside Money for Tax

Unlike regular employees, freelancers don’t have tax automatically deducted from their income. This means you’ll need to take charge of setting aside a portion of your earnings for tax. A good rule of thumb is to save about 25-30% of each payment. That way, you won’t be caught off guard when tax time rolls around.

Stay On Top of Superannuation

Freelancers don’t have the luxury of employer-paid super contributions, so it’s important to set up your own superannuation contributions. Even small regular contributions can help you build up your super over time. Plus, making voluntary contributions might come with tax benefits, so it’s worth discussing this with your accountant.

Consult with an Expert

Freelancing can be financially rewarding, but the complexities of managing taxes, super, and deductions can add up quickly. This is where Accountants in Hobart like Hills Accountants can make a real difference. Having a professional help you stay on top of things not only saves time but also ensures you're making the most of your tax benefits while staying compliant with the ATO.

Final Thoughts

Being a freelancer in Hobart’s growing gig economy offers flexibility and freedom, but with it comes the need for careful financial management. Whether it’s keeping track of income, setting aside tax, or claiming the right deductions, managing your finances well is crucial to long-term success. And when in doubt, remember, the team at Hills Accountants in Hobart is always here to lend a hand.

For more information, email us today at admin@hillsaccounting.com.au or call us on 03 62737800

Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs.

For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.

72 Derwent Park Rd, Moonah
TAS 7009, Australia

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