You and the Business Are Not Separate Taxpayers
As a sole trader, you generally report your business income and expenses through your individual tax return. There is no separate company-style income tax return for the sole-trader business.
Sole Trader · Tax · BAS · Bookkeeping
Practical tax and accounting support for Brisbane sole traders, freelancers and self-employed business owners. Hamro Accountant Brisbane can help you organise business income and expenses, review GST and BAS obligations, consider PSI, prepare your individual tax return and build a cleaner accounting process for the year ahead.
General information only. Tax, GST, PSI and deduction treatment depends on your actual business activity, records and circumstances.
A sole trader is an individual carrying on a business. The ATO says sole traders generally report business income and expenses in their individual tax return rather than lodging a separate business income tax return. The same person may also need to consider GST, BAS, PAYG instalments, employee obligations and other business reporting depending on how the business operates.
Moving from employment into a sole-trader business means your income, expenses and business obligations need to be organised differently.
As a sole trader, you generally report your business income and expenses through your individual tax return. There is no separate company-style income tax return for the sole-trader business.
Sales, invoices, business costs and supporting evidence should be recorded consistently so the net business result can be prepared correctly.
If GST registration applies, the business can have ongoing BAS and GST responsibilities during the year as well as the annual income tax return.
A sole trader is personally responsible for the business, including its debts and losses. As the business grows, structure can become an important area to review with appropriate tax and legal advice.
A sole trader may have business income as well as wages, bank interest, investments, rental-property income or other amounts. The tax return needs to bring the relevant information together rather than treating the business as a completely separate taxpayer.
The business section of the return generally includes the income and expenses connected with the sole-trader activity so the net result can be included in the individual's taxable position.
Amounts earned through your sole-trader activity need to be captured consistently.
Expenses need the required business connection, records and private-use apportionment where relevant.
Employment, investments and other relevant personal income can sit in the same individual return.
Invoices, receipts, statements and calculations help support the amounts included in the return.
The ATO says sole traders must register for GST when annual GST turnover is $75,000 or more, subject to the GST rules that apply to the activity. If you become required to register, the ATO generally requires registration within 21 days.
Once registered, you generally need to account for GST on taxable sales, keep appropriate tax invoices and lodge Business Activity Statements according to your reporting cycle.
Explore BAS & GST SupportAnnual GST turnover for most businesses.
GST turnover is not simply the same as profit.
Voluntary registration may be possible below the threshold.
Taxi and rideshare businesses have special GST registration rules.
Paying for something from a business account does not automatically make it deductible. The nature of the expense, business use and supporting records all matter.
Business software, cloud tools and subscriptions may be relevant where they are genuinely used in earning business income.
Business-use motor-vehicle costs can require specific records and separation of private use depending on the claiming method.
Equipment used in the business can have different tax treatment depending on cost, use, asset rules and available concessions.
Some home-based running expenses may be relevant where the home is used to operate the business, subject to the tax rules and records.
Business insurance, accounting, registration, bank and other administration costs can be relevant depending on the circumstances.
Receipts, invoices and working papers help substantiate business expenses and explain how private and business use were separated.
If your income is mainly generated from your personal skills or labour, it may be Personal Services Income. Sole traders can be affected by the PSI rules, which can change how some deductions and income are treated.
The ATO says a sole trader is not required to pay super guarantee for themselves, although personal super contributions may be made. If the business employs eligible workers, employer super obligations can apply to those workers.
Explore payroll & super supportThe ATO generally requires businesses to keep records that explain their transactions and tax position. Many records need to be kept for at least five years, although some records can require longer retention.
A simple bookkeeping routine throughout the year is usually much easier than reconstructing income and expenses immediately before the tax return.
We only use the form to start the conversation.
Invoices, sales records and client payment information
Business expense receipts and supplier invoices
Bank and payment-platform information used for the business
Vehicle, travel and business-use calculations where relevant
GST, BAS and tax invoice records if registered for GST
Asset purchases, equipment and finance records where applicable
Sole trader is often a simple way to start, but growth can change the questions that matter. Employees, higher turnover, business risk, financing, profit retention and future ownership can all make structure worth reviewing.
Changing structure can create tax, legal and administrative consequences, so it should be considered carefully rather than changed only because the business has become busier.
These Brisbane service pages connect tax return preparation with the accounting work that can support the business throughout the year.
Keep business income, costs, bank transactions and records organised throughout the year.
For GST-registered sole traders who need support with Business Activity Statements and GST reporting.
Create a cleaner digital workflow for invoices, bank feeds, reconciliations and business reporting.
For people moving from employment into self-employment or setting up a new sole-trader business.
The aim is to understand your business first, then prepare the tax position from records that make sense.
We look at what you do, how you earn income, your ABN, GST status and the way records are currently maintained.
Business income, expenses and relevant supporting records are reviewed and brought into a clearer structure.
We consider business income, deductions and other individual income relevant to the return, along with GST or PSI issues where applicable.
Better bookkeeping, BAS routines and business systems can make the next tax year easier to manage.
These answers are general information only. The correct tax treatment depends on your business, records and circumstances.
Generally no. The ATO says sole traders report their business income and expenses in their individual tax return using the business items section rather than lodging a separate business income tax return.
A sole trader carrying on an enterprise can be entitled to an ABN and generally uses that ABN for the business activity. An ABN is a business identifier and is not the same thing as a separate company.
For most businesses, GST registration is generally compulsory when annual GST turnover reaches $75,000 or more. Some activities have special rules, so the nature of the business also matters.
Business expenses may be deductible where the tax rules are met. Private or domestic expenditure is not automatically deductible, and mixed-use expenses may need to be apportioned. Supporting records are also important.
The ATO says sole traders do not have to pay super guarantee for themselves, although they can choose to make personal super contributions. If a sole trader employs eligible workers, employer super obligations can apply to those workers.
Yes. If income is mainly a reward for your personal efforts or skills, it may be Personal Services Income. Whether the PSI rules apply depends on the business arrangements and relevant tests.
Growth can make business structure worth reviewing, but there is no single turnover point at which every sole trader should become a company. Tax, legal risk, ownership, administration and future plans should all be considered before changing structure.
Tell us briefly what your business does and what you need help with. Whether it is your tax return, BAS, GST, bookkeeping or moving from a basic ABN setup into a growing business, we can start with the right conversation.
Sole trader tax return support
GST & BAS questions
Bookkeeping & business growth support