How much tax do we need to pay for overseas outsourcing (software) ?

Question

I have friends who run business in australia and he outsourced some of his work to overseas contractor (not australian company).

Just because the overseas contractor don't have ABN number, does it mean my friend must pay 46.5% for the tax ? I read from the ATO, it says that the person who don't have ABN must pake 46.5% (oh no..)

another question, if you buy product and used for production (as expense), do you need to pay that tax as well ? for example, you buy a software that needed to be used for your current project.

Thanks.

Answer 1

 I do have a related question:

I do have some plans to start a software outsorcing business. I have few Australian clients and i take software projects and send it to india for development and on development completion i would get it back and sell it to the AUS customer. This involves money transfer between me and the Indian company. In this case is thr any tax applicable other than 10%  GST?