Tax

Author

Benedict Thekkel

Here’s a forward-thinking, detailed breakdown of what you (a 24-year-old Brisbane-based part-time employee + private contractor + stock investor) need to know about doing taxes in Australia. I’ll address key areas, things to watch, and some rough calculations and planning to keep you ahead of the game.

1. The big picture: how income tax works in Australia

As a resident for tax purposes, you pay tax on your taxable income for the financial year (1 July → 30 June).
The tax system is progressive: higher income → higher marginal rates.
You lodge a tax return (via Australian Taxation Office “ATO”) each year declaring all assessable income, claiming allowable deductions, and calculating how much you owe (or refund) for the year.
For 2025-26 (and nearby years) you’ll also face the Medicare levy (generally 2%) if your income is above thresholds.
Since you have multiple income types (employment + contracting + investment), you’ll need to carefully declare all of them and understand your deduction opportunities.

2. Your income scenario & what it means

You said you have:

~ A$75,000 from part-time employment.
~ A$10,000 from private contracting (so total ~ A$85,000).
Some investment income via stocks (through platforms like CommSec and CMC Markets).

Employment income (~ $75k)

Your employer will (hopefully) withhold PAYG tax from your salary/wages, meaning some tax is pre-paid.
At tax time you’ll include your salaries/wages as part of your taxable income.
You can claim work-related deductions (if eligible) to reduce taxable income, but only if you meet the ATO rules (see below).

Contractor income (~ $10k)

As a private contractor you are likely treated as self-employed/sole trader (unless you’ve set up a company). The ATO has guidance on “working as an independent contractor”. (Australian Taxation Office)
Key implications: you’ll need to keep business records, potentially register for an ABN (Australian Business Number), determine whether GST applies (more on that). (Aus Legal Hub)
Because tax might not be automatically withheld, you must ensure you set aside funds to cover your tax liability on that income.

Investment income

You must declare all investment income: interest, dividends (including franking credits), capital gains (or losses) from share sales. (Australian Taxation Office)
If you held shares for more than a year, you may qualify for the 50% discount on a capital gain (for individuals) when calculating net capital gain. (Wikipedia)
Depending on how active you are (trading vs passive investing) the ATO may scrutinise things more closely.

3. Deduction-opportunities & things to watch

Since you have multiple income streams, you’ll want to maximise deductions where legitimate — but you must keep records and stay within ATO rules.

Employment & contractor deductions

For your contracting income: you may have business-deductible expenses (e.g., tools/equipment, home office if eligible, travel relating to the contracting work, etc). Several guides talk about contractor tax deductions. (taxationhouse.com.au)
You need to be clear on the difference between “employee work-related expense” vs “self-employed business expense”. The rules differ. (ismaccountants.com.au)
Some common “no-go” areas: commuting (home to regular workplace) is generally not deductible. (Accountantify)
Keep good records: receipts, invoices, logbooks if travel/vehicle use, home office records if you use part of your home for contracting. Be prepared for scrutiny. (News.com.au)
If your annual turnover (from your contracting business) exceeds the GST registration threshold (currently $75,000) you would need to register for GST. In your case ~$10k is well under, so likely you don’t need to register. (Aus Legal Hub)
Super contributions: as a contractor you aren’t automatically covered by employer super contributions (depending on your structure). You may want to voluntarily contribute to superannuation for tax-effectiveness.

Investment deductions & capital gains

If you hold shares that pay dividends, you include both the cash dividend and the franking credit in your taxable income. The franking credit acts like a tax paid by the company which you get credit for. (Wikipedia)
If you sell shares at a gain: you’ll calculate the cost base (purchase price + incidental costs) and proceeds; the net capital gain is included in your taxable income. If you held for >12 months, you may apply the 50% CGT discount (for individuals). (Australian Taxation Office)
If you made a capital loss, this can be carried forward to offset future capital gains (but not general income). (Australian Taxation Office)
If you are active/trading shares rather than passive investing, the ATO may treat income differently (ordinary income) — so your intent and pattern matter.
Make sure you receive full statements from your broker(s) (CommSec, CMC Markets) showing any distributions, franking credits, share sale transactions.

4. Rough estimate of tax for your scenario

Let’s do a simplified estimate (for illustration) of how your tax might look. This is approximate, not a substitute for a professional accountant.

Assumptions

Taxable income = $85,000 (i.e., $75k employment + $10k contracting)
Ignore investment income for now (assume small)
Assume you claim some reasonable deductions (say $2,000 overall)
Marginal tax rates (2024-25 year for resident individuals, ignoring Medicare etc):
- 0 – $18,200: 0%
- $18,201 – $45,000: 19%
- $45,001 – $120,000: 32.5%
Medicare levy of ~2% on taxable income (above threshold)

Calculation

Taxable income after deductions = $85,000 – $2,000 = $83,000
Tax on first $18,200 = $0
Tax on $18,201 → $45,000 = ($45,000-$18,200) × 19% ≈ $26,800 ×0.19 ≈ $5,092
Tax on $45,001 → $83,000 = ($83,000-$45,000) = $38,000 ×0.325 ≈ $12,350
Total tax ≈ $5,092 + $12,350 = $17,442
Medicare levy ≈ $83,000 ×0.02 = $1,660
Total approximate tax liability ≈ $19,102
If your employer has withheld some amount via PAYG, and if you’ve set aside tax on contracting income, you might either owe additional or get a refund depending on how much was withheld.

Investment income add-on

Suppose you earned $2,000 in dividends (with some franking credits) + you realised a capital gain of $1,000. Then your taxable income increases accordingly, and pushes part of that at your marginal rate (~32.5%). So it’s extra tax maybe ~$650 + possible franking credit offset.

Take-home planning

After tax, your net take-home (from $83,000 taxable) would be ~$63,900 (i.e., $83,000 – $19,100) → about 77% of gross.
For budgeting: if you are contracting $10k, you might want to temporarily set aside ~30-33% of that (~$3,000) toward tax/Medicare/other obligations (depending on your deductions).

5. Key compliance / admin items & action list

Here are things to do to stay ahead and avoid surprises:

Item	Why it matters	Suggested action
Register for ABN (if not already) for contracting income	The ATO expects you to operate as a business if you’re a contractor. (Australian Taxation Office)	If you haven’t, register for ABN as a sole trader (free) and issue invoices quoting it.
Maintain separate bank account / good record-keeping for contracting	Helps separate business vs personal, simplifies deduction tracking. (QuickBooks)	Set up a separate account; keep copies of invoices, receipts, and logbooks.
Estimate and pay quarterly “PAYG instalments” (if required)	To avoid large lump-sum at tax time and possible interest/penalties.	Monitor your contracting and investment income; talk to accountant if instalments look advisable.
Track investment transactions (share purchases, sales, dividends, franking credits)	You need correct cost bases & franking credits for correct CGT and dividend reporting. (Australian Taxation Office)	Export statements from CommSec and CMC Markets; store in a folder; note purchase date, cost‐base, brokerage.
Keep work-related expenses and vehicle/home-office logbooks (if applicable)	The ATO may scrutinise deductions, especially home-office, vehicle, and contractor claims. (News.com.au)	If you work from home for your contracting, track hours; keep bills and apply correct apportionment.
Know the tax return deadlines and processes	Missing deadlines may incur penalties; lodging via myTax, paper or tax agent.	Usually lodge by 31 October if doing yourself; consider using a registered tax agent for complex affairs.
Consider voluntary super-contributions	These can reduce taxable income and build retirement savings tax-efficiently.	Explore salary sacrifice or personal deductible super contributions; check caps.
Stay aware of rule changes	Tax rules change, and with investing + contracting your situation has more moving parts.	Read ATO newsletters, or work with tax professional.

6. Future planning & optimisations

Since you’re relatively young and starting to build a mix of income and investments, here are some forward-thinking tips:

Tax-effective investing: Holding shares that pay franked dividends could be beneficial (you get franking credits). Make sure you hold shares >12 months if CGT discount matters.
Business growth: If your contracting side grows (say > $75k turnover), you’ll need to consider GST registration, possibly a different business structure (company vs sole trader) for tax/protection advantages. (Aus Legal Hub)
Superannuation: Early contributions into super can be a smart way to lock in lower tax rates (typically 15% inside super) and build long-term wealth.
Asset diversification & CGT strategy: Think about how you dispose of shares (timing, offsetting losses) to manage capital gains tax.
Cash-flow for tax: Since contracting and investing add variability, build a “tax buffer” in your bank (e.g., set aside ~30% of contracting + investment earnings) so you’re not caught by surprises.
Professional adviser: Given your mix of employment + contracting + investments, a tax accountant or financial adviser (even just once/year) could identify deduction opportunities, structure considerations, and ensure compliance.

7. Things specific to Queensland / Brisbane

There are no major unique “state tax” burdens for personal income in Queensland different from other states (personal income tax is federal), but one thing to keep in mind:

If you use a vehicle for your contracting work and live in Brisbane (or commute regionally), the mileage/log-book rules apply the same as national rules; ensure you’re capturing the “business-use” portion only (commuting to a regular workplace is not deductible).
If you’re working from home (in Brisbane) for your contracting business, you may be eligible to claim home-office deductions (internet, phone, electricity) under ATO guidelines — but you must apportion correctly and keep records.
For investment income: if you hold property in Queensland in future, you’ll need to consider state land tax/fees — but for shares now, it’s federal.

8. Summary checklist for your upcoming tax return

Here’s a checklist tailored for you, Ben (software-engineer, part-time + contractor + investor):

If you like, I can run a more detailed projection for you (including your expected investment income, exact tax brackets for 2025-26, and simulate how different deduction scenarios impact your tax) and also prepare a tailored spreadsheet template you can reuse each year. Would you like that?