A sole trader is the simplest business structure. The structure is inexpensive to set up because there are few legal and tax formalities.
If you operate your business as a sole trader, you trade on your own and control and manage the business. You are legally responsible for all aspects of the business, including any profits or losses.
When you are a sole trader, you use your individual tax file number (TFN) when you lodge your income tax return.
The business income is treated as your individual income and you are solely responsible for any tax the business must pay. This means that, after claiming a deduction for all allowable expenses, you include all your business income with any other income and report it on your individual tax return.
As a sole trader, you pay the same tax as individual taxpayers, at marginal income tax rates.
We can help you to understand what you’re entitled to claim, what receipts to keep and how to maximise your individual tax return.
If you carry on an enterprise in Australia as a sole trader, you can apply for an ABN for your business and use this number for all your business dealings. A trading name can also be attached to the ABN via a separate registration.
You can register for goods and services tax (GST) if you carry on an enterprise.
It is compulsory to be registered for GST if your annual GST inclusive turnover is $75,000 or more.
We provide services for:
- Sole Trader Tax Return Preparation
- Business Advice
- Business Plans
- GST & PAYG Advice
- BAS Preparation
- ABN Applications
- Forecast of Business Profit and Loss
- Work Cover Registration
Our comprehensive Sole Trader Tax Checklist will help you to collate all of the documents we will need to ensure all expenses are captured. The checklist can be downloaded here.