Starting a career in private tutoring can be a rewarding way to share your knowledge and earn an income. However, before you begin, it’s essential to understand the legal requirements in Australia, specifically whether you need an Australian Business Number (ABN).
What Is ABN?
An ABN, which stands for Australian Business Number, is a unique 11-digit that identifies your business with the government. It’s essential for most companies, including tutoring services, and is a key part of the tax system.
When Do Tutors Need an ABN?
If the Australian Taxation Office (ATO) considers your tutoring activities a business, you will generally need an ABN.
Here are a few signs that your tutoring gig has crossed into business territory:
• You intend to make a profit. You’re not just tutoring as a hobby or for social good; you’re doing it to earn money.
• You repeat the activity. A one-off tutor job might not count, but providing lessons regularly shows you’re running a business.
• You run it in a business-like manner. This includes having a business plan or keeping organised financial records of your income and expenses.
• You have relevant skills. You possess the necessary knowledge and qualifications to provide a tutoring service professionally.
• You advertise your services. You actively market your tutoring business to attract new students and grow your client base.
Kickstart Your Tutoring Career
If your work meets these criteria, applying for an ABN is a crucial first step. With the legal side sorted, you can focus on what you do best. Ready to find your first students and begin your private tutoring journey? Get in touch now and be one of our private tutors.