Sole Trader

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 which means debts and losses cannot be shared.

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.

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
  • Tax Planning
  • Capital Gains Tax
  • Business Advice
  • Business Plans
  • GST & PAYG Advice
  • BAS Preparation
  • Superannuation Tax Advice
  • ABN Applications
  • Business Name Registration
  • Forecast of Business Profit and Loss
  • Work Cover Registration
  • Form 19 / Section 52 Preparation

Unsure of what income and expenses you should bring in for your appointment?

Please feel free to refer to our Sole Trader Checklist.