Sole Trader Tax Return Services for Australians
Tax Return Preparation & Year-Round ATO Compliance for Australian Sole Traders & Contractors
Service at a Glance
Personalized scope & lodgementTradies, contractors, freelancers, consultants & sole traders with an ABN
Business profit & loss integrated into individual tax return (no separate company lodgement)
PAYG instalments, GST registration threshold ($75k) & Personal Services Income (PSI)
100% online video meetings (Outlook Calendar) or in-person by arrangement
Direct electronic ATO portal lodgement by Registered Tax Agent #26242127
Motor vehicle expenses, tools, instant write-offs, home-based business & record keeping
- Pre-lodgement draft walkthrough & written client sign-off
- Extended ATO tax agent lodgement deadlines available
- Transparent upfront quoting & zero lodgement without approval
What Is a Sole Trader Tax Return
Operating as a sole trader combines your business venture with your personal Australian tax return under your individual Tax File Number (TFN) and Australian Business Number (ABN).
Individual Tax Return Lodgement
A sole trader's individual tax return includes income and expenses from the business they operate. The business does not lodge a separate income tax return as a company would.
Net Business Profit & Personal Income
Net business profit is generally assessable business income less allowable deductions. It is considered with other personal income, such as salary, investments or rent.
Treatment of Business Losses
If the business makes a loss, the applicable rules determine whether it can be used immediately or must be deferred.
Who This Service Is For
This service is for Australians carrying on a business in their own name or under an ABN, including:
tradies, subcontractors and labour hire workers
Carpenters, electricians, plumbers, builders and trade subcontractors managing tool deductions, materials and vehicle logbooks.
freelancers, consultants and professional service providers
Marketing specialists, IT contractors, business consultants and designers navigating professional fees and PSI rules.
online and home-based business operators
E-commerce sellers, creators, digital stores and home-based service operators claiming occupancy and operational expenses.
sole traders with both employment and business income
Professionals running an ABN side-business alongside regular PAYG employment salary and wages.
new sole traders preparing their first return
First-time business owners establishing tax systems, expense tracking, and claiming initial startup costs.
established operators with more complex records or obligations
Established businesses handling GST, multiple subcontractors, asset depreciation schedules, and quarterly BAS.
How Financially Up Can Assist
An accountant for sole traders can bring business and personal tax information together in one return. Financially Up can assist with:
preparing and lodging your individual tax return with sole trader business income
Complete preparation of your individual return including business schedules, income statement reconciliations, and direct ATO portal submission.
reviewing income, expenses and supporting records
Thorough verification of your gross revenue, invoices, supplier receipts, and accounting software exports to substantiate claims.
separating private and business-use amounts
Careful apportionment of phone, internet, vehicle, travel, and personal equipment expenses according to ATO substantiation rules.
considering assets, vehicles and home-based business costs
Assessment of motor vehicle logbook vs cents-per-km methods, home office running costs, and depreciating machinery or tools.
reviewing GST, BAS and PAYG information where relevant
Reconciling annual tax figures with lodged Business Activity Statements and tracking PAYG income tax instalment credits.
identifying matters requiring clarification
Proactive review of ambiguous transactions, unusual expense spikes, or missing documents before drafting schedules.
explaining the return and outcome before lodgement
Clear walkthrough of your net taxable income, estimated refund or tax payable, and obtaining your approval before submission.
Business Expenses Assets and Records
Sole traders may generally claim expenses incurred in earning assessable business income when the relevant requirements are met and records are available. For mixed expenses, only the eligible business-use portion may generally be claimed.
Common Claimable Areas
Common areas include tools, software, phone and internet use, motor vehicle expenses, home-based business costs, insurance, professional fees, subcontractors and supplies. Eligibility depends on the expense, its use and the applicable rules.
Depreciating Assets & Capital Expenses
Some purchases are depreciating assets or capital expenses. Whether an amount is deductible immediately or over time depends on the asset, cost, business use, purchase date and rules for that income year.
- Instant asset write-off thresholds
- Simplified depreciation pool for small business
- Effective life calculation for machinery & vehicles
Record Keeping & 5-Year Retention
Records may include invoices, receipts, bank transactions, software reports, asset documents, vehicle records, home-based business calculations and BAS information. Business records generally need to be kept for five years, although some must be retained longer.
PAYG, GST, BAS and Personal Services Income
Essential Australian tax systems that directly impact your sole trader cash flow, tax instalments, and statutory business reporting obligations.
PAYG Instalments and Planning for Tax
Tax may not be withheld from customer payments, which can create a liability when the annual return is assessed. Setting money aside may help, but the appropriate amount depends on individual circumstances.
PAYG instalments are payments during the year towards expected tax on business and investment income. The ATO may enter a taxpayer into the system using information from a lodged return, and voluntary entry may be available. Instalments are credited against the annual assessment and do not replace the annual return. Amounts and timing depend on ATO requirements and individual circumstances.
GST BAS and the Annual Tax Return
For most businesses, GST registration is required when current or projected GST turnover reaches $75,000. Different rules apply in some circumstances, so the business activity and turnover should be reviewed.
A business activity statement, or BAS, is separate from the annual individual return. Depending on the obligations involved, it may report GST, PAYG instalments and other amounts. The annual return reports taxable income for the financial year.
Personal Services Income for Contractors and Professionals
Personal Services Income, or PSI, is income mainly produced from an individual's efforts or skills. It may apply to contractors, freelancers, consultants and professionals, including people with an ABN.
PSI rules may affect income reporting and available deductions. Their application depends on the working arrangements and relevant tests, not occupation alone.
Online Sole Trader Tax Return Process
Financially Up assists sole traders Australia-wide. Book online or arrange a time by phone, then meet online through an appointment arranged in Outlook Calendar or in person by arrangement.
1. Book an Appointment
Choose a suitable time online or arrange a booking by calling 1300 328 316.
2. Discuss Your Situation
We discuss your activities, income, expenses, records, GST or BAS position and other income.
3. Provide Your Records
We confirm the relevant documents, such as income reports, bank records, invoices, receipts, asset information and vehicle or home-based business records.
4. Review and Prepare
Financially Up reviews the information, prepares your return and raises questions where clarification is required.
5. Confirm and Lodge
You can review the return, understand the outcome and ask questions before lodgement.
About Financially Up
Specialist small business tax accountants providing reliable return preparation for Australian sole traders, contractors and freelancers.
Financially Up Pty Ltd is a registered tax agent, Tax Agent Number 26242127. Bookings are available online or by phone, with online and in-person meetings for sole traders across Australia.
Our work reflects the records provided and applicable Australian tax rules. We do not guarantee a deduction, refund or tax saving.
Registered Tax Agent
Tax Agent Number: 26242127
CPA & IPA Qualified
Small Business Tax Specialists
Australia-Wide Support
Virtual Outlook Meetings & In-Person
Frequently Asked Questions
Common questions about sole trader tax returns, business deductions, GST registration, PAYG instalments and PSI rules with Financially Up.
Business income and expenses are reported through the individual's return. Net business profit or loss is considered with other personal income.