Navigating the Working Hours Requirement for International Students Running a Business in Australia

For international students running a business in Australia, one of the key challenges one faces is proving that they are working the required 40 hours per fortnight. This article aims to provide a comprehensive guide on how to effectively manage your working hours and meet the necessary requirements set by the Australian tax authorities.

Documentation and Time Tracking

The primary method to ensure you are complying with the 40-hour requirement is through thorough documentation and time tracking. One effective approach is to integrate a time clock into your business operations. Having your employees, including yourself, sign in and out using time cards can provide a clear record of working hours.

Implementing a Time Clock System

1. Install a Time Clock System: Ensure that each employee signs in and out using a digital or paper-based time clock. This will automatically record the time and date along with the hourly rate of pay.

2. Include Lunch Breaks: If your employees take lunch breaks, they should clock out during this period and clock back in after the break. This ensures accurate tracking of working hours.

3. Consistency is Key: Keep the time clock system consistent and follow it religiously to maintain a clear and reliable record of your working hours.

Alternate Methods of Proof

While maintaining a time clock system is a reliable method, there may be situations where it is not feasible or sufficient. In such cases, alternative methods can be employed to meet the 40-hour requirement.

Notarized Letter and Payment Proof

1. Notarized Letter: A notarized letter from your employer on company stationary can serve as a solid record of your employment and the hours worked. Including details such as your position and the amount of time spent working each fortnight can help substantiate your claim.

2. Payment Check or Stub: Providing a copy of your payment check or a payment stub can further verify the amount and timing of your income. These documents can be requested for every pay period to ensure an accurate record.

Evidence of a Regular Salary

In addition to time-tracking and alternative documentation, another crucial aspect of proving your working hours is demonstrating a regular and substantial salary coming from a business in Australia.

Bank Statements and Salary Statements

1. Bank Account Statement: Maintain a bank account where a significant portion of your income is deposited. Regularly check and update your bank statements to reflect your financial stability and consistent earnings.

2. Monthly Salary Statement: Request a monthly salary statement from your business. This document should include all deductions and taxes, providing a clear picture of your net income.

Ensuring Compliance and Avoiding Tax Issues

Proving your working hours is not just about meeting the requirements set by the tax office; it is also crucial for ensuring you are not in breach of any immigration laws or other regulations.

1. Payroll Booklet: Request a payroll booklet from your business. This document can be used to deduct taxes from your employees' paychecks and ensure compliance with Australian tax laws. Proper tax compliance will help avoid any legal or financial penalties.

2. Documentation and Records: Keep comprehensive documentation and records of all financial transactions, time cards, and other relevant documents. These records can be easily provided to authorities if required.

Conclusion

Running a business as an international student in Australia while adhering to the strict requirements of working 40 hours per fortnight can be challenging. However, with the proper use of time tracking systems, alternative proof methods, and maintaining accurate financial records, you can effectively manage your working hours and stay in compliance with the law. Remember, consistency and thorough documentation are key to ensuring your activities align with your visa requirements and tax obligations.