Sole trader tax returns

If you are a sole trader and receive ABN income, you have to lodge your tax return with ATO every year.

Please note you can not lodge a return not necessary if your income is less than the tax-free threshold or you operate your business at losses.

Sole trader tax return form is same as the other individual tax return but you need to report the following:

  • the supplementary section
  • business and professional items schedule

The tax rates for sole trader income is same as individual tax payers. However you may be eligible form the small business tax offset that can reduce your tax payable amounts.

Once you have a tax payable position for one financial year, ATO will put you into the Pay As You Go (PAYG) instalments cycle, therefore you need to put aside money to meet this commitment.