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Private Foundation invoicing ABN
Hey guys,
Sorry for the long post but I would appreciate your input.
I now operate a private foundation but in my current working arrangements (I am a disability support worker and get paid by the NDIS) I cannot get paid straight to the foundation, I must get paid through my ABN (Sole trader)
So I am going to be invoicing my ABN from the foundation for “services rendered” in order to claim this and bring my taxable income down.
My theory is that:
1. I (the living sentient man) conduct the support work for the foundation, which is a “contractor” to the ABN that actually gets paid for the work.
2. Then my sole trader ABN (therefore my straw-man name) gets paid.
3. The foundation invoices the ABN along with the ATO form NAT 3346 for the services it rendered, and therefore the ABN (straw-man) claims this as a business expense.
I am just wondering how detailed the description of the services would need to be on the invoice to satisfy the ATO in the event of an audit (as this would be the only real reason I would ever need these invoices)
Would something like this suffice?
“Services rendered:
Provide disability support care- 17/7/23 – 23/7/23″
Yes my foundation was setup by who Mark recommends but not alot of situation specific info is provided so I hoping some folks on here are doing something similar and can offer some wisdom.
Please feel free to offer any other guidance you think may be related or if you think I am not comprehending something correctly.
Thank you in advance!
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1 Reply
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It sounds like you have it all in hand. I would stick to the sort of description you are using. The tax department just needs to see what you were being invoiced for and the receipt that is provided to you to keep your records in order. If they ask more detailed questions then just have some questions ready to ask them if the need arises so that you are answering a question with a question. Module 9 “Dramatically Improve Your Settlement Rates by Knowing How to Hold Your Position” has an example of a successful meeting with the ATO with Mark holding his position successfully. It’ll give you an idea of how you could approach them if the need arises.