The Australian Tax Office has provided five tips to help sole traders meet their tax obligations.
1. register as a business if you’re carrying on an enterprise
2. register for GST if your business has a GST turnover of $75,000 or more (there are other instances where you’ll need to register for GST so find out more about when to register)
3. report all assessable income, for example, if you earn other income outside of your business such as a salary or wages
4. correctly claim deductions for expenses and only claim the business portion if an expense is for both business and private use. For example, make sure you’re
- working out the cost of sales (which is the expenses directly related to the production of a product) accurately and accounting for stock used for private purposes
- correctly claiming expenses related to rent, repairs and maintenance
- only claiming the business portion if you use your motor vehicle for private purposes
5. cancel your ABN if you need to permanently close your business.
You can use the ATO app to access and manage your tax and super (like capturing expenses) on the go.
Find more information at ato.gov.au or speak with a registered tax or BAS agent for more information tailored to your circumstances.