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Sole Traders Tax Returns

A sole trader is one of the simplest and cheapest business structures available to run a business with less paperwork needed than a ‘Partnership’ or ‘Pty Ltd’. However, as a sole trader you are responsible for any tax your business must pay and there are risks associated to this structure. The sole trader controls and runs the business and uses their individual Tax File Number (TFN), and can apply for an Australian Business Number (ABN) for their business dealings. You must keep accurate records of your income and business expenses in order to report your taxable income or loss to the Australian Taxation Ofice (ATO). We recommend using a simple bookkeeping program and setting up a business bank account to help maintain accurate records.

We can help to lodge your tax return and review your assessable business income and deductions as well as any other assessable income (eg another salary/wages or investments). Your dedicated accountant can help to ensure that your tax opportunities are maximised whilst keeping within the law. They can also help to review future opportunities or improvements for the year ahead



Sole traders can apply for GST registration if your annual business turnover is $75,000 or more.


As a sole trader you will normally pay PAYG (Pay As You Go) instalments towards your year-end tax liability. PAYG should be lodged before your tax return is lodged

Small Business Tax Concessions

If you make less than $2 million aggregated turnover in the financial year you are likely to be classified as a “small business” and as such have small business tax concessions which include: Income tax concessions Capital Gains Tax (CGT) concessions Excise Concession GST Concessions Fringe Benefits Tax (FBT) concesssion PAYG instalment concessions Each of these points covers a variety of areas with specific rules and regulations. Our accountants help to review all of these areas during your tax return.

Is it worth taking risk

 As a sole trader you are personally liable for any costs or claims made against the business. This means that your personal assets, such as your home can be taken to pay for damages awarded against you. You should review the suitability of your business structure with your accountant on an annual basis. we can help to look at minimising risk and maximising opportunities.

Sole Trader taxes in Australia can be complicated doing it yourself, that’s why Advanced Accounting Solutions has specilised team to help Sole Traders to lodge their tax returns & business activity statements(BAS).

Call our team today for tax, accounting and business advice