CAN STUDENTS WORK UNLIMITED HOURS ON ABN | UNLIMITED ON UBER EATS | INTERNATIONAL STUDENT

Summary

In this video, the speaker discusses working on an Australian Business Number (ABN) versus a Tax File Number (TFN) as an international student. He explains the key differences between the two, such as tax deductions and flexibility in working hours. The speaker shares his personal experience of working within the 24-hour weekly limit imposed by student visas and highlights the risks of exceeding this limit. He also advises caution when working under an ABN and emphasizes the importance of managing taxes properly to avoid issues. The video offers practical advice for students balancing work and visa regulations.

Takeaways

• 😀 The speaker discusses the topic of working in Australia on a student visa, specifically focusing on the difference between ABN (Australian Business Number) and TFN (Tax File Number).
• 🏢 ABN is for business-related activities where you charge for services, and TFN is for tax purposes, affecting how much tax you pay at the end of the financial year.
• ⏰ The speaker emphasizes the importance of adhering to the 24-hour work limit per week as per student visa conditions to avoid potential issues with immigration or tax authorities.
• 📊 There's a mention of the risks associated with working more than the allowed hours, including the possibility of being reported to the authorities, which could lead to visa issues.
• 💼 The speaker shares personal experiences and observations about working with ABNs, suggesting that while some people work more hours without issues, it's not recommended due to the associated risks.
• 📋 It's advised to keep accurate records of income and expenses, especially for tax purposes, to ensure compliance with tax laws and to avoid any potential penalties.
• 🤝 The speaker suggests discussing work arrangements with employers or contractors to ensure that any income reported aligns with the actual hours worked and the agreed-upon pay.
• 📝 There's a mention of the importance of keeping income statements and tax-related documents organized, as these will be necessary for tax filings and potential audits.
• 🚫 The speaker explicitly states that they do not endorse or encourage working more than the allowed hours, and that the decision to do so is a personal choice with inherent risks.
• ⚠️ A warning is given about the potential consequences of not following the rules, including possible fines or visa cancellations, emphasizing that it's crucial to be aware of the risks involved.

Q & A

What is ABN, and why is it important for working in Australia?

ABN stands for Australian Business Number. It is important because if you work using an ABN, you receive full payment for your services, but you are responsible for paying taxes at the end of the financial year.

What is TFN, and how does it differ from ABN?

TFN stands for Tax File Number. When working under a TFN, taxes are automatically deducted from your paycheck, and the salary listed on your pay slip reflects the post-tax amount. In contrast, with an ABN, you receive the full payment upfront and pay taxes later.

Can students on a visa in Australia work full-time with an ABN?

No, students on a visa are generally restricted to working 24 hours per week. While some students work more using an ABN, there are risks involved, such as potential visa complications or issues with tax authorities.

What are the risks of working more than 24 hours per week as a student on a visa?

Exceeding the 24-hour work limit can lead to problems with immigration and may result in visa cancellation or deportation if caught by authorities. While some students do work more hours, the risk is always present.

What precautions should students take if working with an ABN?

Students should ensure that their employer is aware of their visa conditions and can adjust their pay slips accordingly. They should also keep detailed records of their income and pay taxes at the end of the financial year to avoid legal issues.

What could happen if a student's pay slip does not align with the 24-hour limit?

If an employer is asked to provide proof of work hours, the student’s pay slip must reflect that they only worked 24 hours, even if they worked more. Employers might need to adjust the pay slip to show compliance with visa conditions.

How do ABN workers handle taxes in Australia?

ABN workers are responsible for managing and paying their taxes at the end of the financial year. They must keep accurate records of their earnings and ensure they pay the correct amount of tax based on their total income.

What is the worst-case scenario for students working more than 24 hours per week?

In the worst-case scenario, a student working more than the allowed 24 hours could face deportation if their visa conditions are violated and discovered by authorities. However, this is rare and typically happens if there are additional infractions, such as not attending classes.

Is it legal for students to work unlimited hours using an ABN?

While some students use ABN to work more than 24 hours, it is technically against visa conditions. Even though the tax authorities may not immediately flag this, it poses a risk if discovered during visa renewals or background checks.

What should students do to minimize risks when working with an ABN?

Students should ensure that they stay within the allowed work hours, adjust their pay slips accordingly, maintain proper communication with their employer or contractor, and file taxes properly at the end of the year to avoid potential issues.