Got tax questions? Call 1300TAXOPIA (1300 829 674) — we’re here to help!

Facebook X-twitter Instagram
New to Taxopia?
Contact

Sole Trader Tax Structure – General Tax Issues

The extract below is from the Australian Taxation Office. This information provides a basic summary of general individual (sole trader) tax return and associated business tax reporting obligations.

Sole trader

A sole trader is the simplest and cheapest business structure you can choose as it has 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, and debts and losses can’t be shared with other individuals.

As a sole trader you’re responsible for your own super arrangements and any staff you employ.

The key features of a sole trader business structure are that you:

  • use your individual Tax File Number (TFN) when lodging your income tax return
  • apply for an ABN and use this number for all your business dealings
  • register for Goods and Services Tax (GST) if you carry on an enterprise (you must be registered for GST if your annual GST turnover is $75,000 or more)
  • pay tax at the same income tax rates for individual taxpayers
  • pay quarterly Pay As You Go (PAYG) instalments towards the amount of tax you expect to pay at the end of the year
  • claim a deduction for any personal super contributions you make after notifying your fund.

As a sole trader you can’t claim deductions for money ‘drawn’ from the business. Amounts taken from the business are not wages for tax purposes, even if you think of them as wages.

Personal services income (PSI)

If you’re paid mostly for your personal efforts, skills or expertise, you might be receiving personal services income (PSI) and you may have to treat deductions in relation to this income differently.

Taxopia online tax accountants can assist you with any structural business tax questions. We have very cheap sole trader tax return solutions for your business. Get started now and complete your tax return by simply completing our online form, “Individual Tax Returns with Rental Property and/or Small Business“.

Have a question? Feel free to contact us on 1300 829 674.

Annual Tax Lodgement Packages

$190 exc gst *

LITE

Annual Tax Reporting Company Tax Return
  • Email Support (Fair use conditions apply)
  • Annual Business Turnover <$1M
  • Self lodgement with Taxopia help
  • Companies who have carried forward losses in excess of $100,000 ($55 additional)

* Taxopia Fastlane Service available

* Basic Package pricing conditions: ($425+ GST):
  • Includes up to 15-minutes of call support to assist you. Taxopia reserves the right to bill for any additional support that exceeds this time.
  • Excludes businesses with turnovers of more than $300,000 per year.
  • Excludes Companies or Trusts who hold property or share portfolios.
  • Excludes preparation of depreciation schedules and calculations.
  • Under this package, we do not accept summarised excel spreadsheets, unless your company turnover is below $30,000 per year. Financial data must come from an Accounting platform where either you can grant us access to generate the reports from, or you create the reports yourself and send them through to us.
  • Can accommodate Companies or Trusts who have carried forward losses in excess of $100,000 for an additional fee of 85$
  • Fixing Bookkeeping errors: an additional $85/hour will be charged

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

Get Started

$425 exc gst *

BASIC

Annual Tax Reporting Company Tax Return
  • Email Support (Fair use conditions apply)
  • Phone Call Support (15min)
  • Annual Business Turnover <$300k
  • Tax return lodged via Taxopia
  • We Act As Your Tax Agent So You May Be Eligible For Tax Extensions
  • Fixing Bookkeeping Errors $85 / hr
  • Companies who have carried forward losses in excess of $100,000 ($55 additional)

* Taxopia Fastlane Service available

* Basic Package pricing conditions: ($425+ GST):
  • Includes up to 15-minutes of call support to assist you. Taxopia reserves the right to bill for any additional support that exceeds this time.
  • Excludes businesses with turnovers of more than $300,000 per year.
  • Excludes Companies or Trusts who hold property or share portfolios.
  • Excludes preparation of depreciation schedules and calculations.
  • Under this package, we do not accept summarised excel spreadsheets, unless your company turnover is below $30,000 per year. Financial data must come from an Accounting platform where either you can grant us access to generate the reports from, or you create the reports yourself and send them through to us.
  • Can accommodate Companies or Trusts who have carried forward losses in excess of $100,000 for an additional fee of 85$
  • Fixing Bookkeeping errors: an additional $85/hour will be charged

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

Get Started
Best Deal!

$850 exc gst *

PREMIUM

Annual Tax Reporting Company Tax Return
  • Email Support (Fair use conditions apply)
  • Phone Call Support (30min)
  • Support by a dedicated accountant
  • Annual Business Turnover <$1M
  • Tax return lodged via Taxopia
  • We Act As Your Tax Agent So You May Be Eligible For Tax Extensions
  • Preparation Of Full Financial Statements (For Bank Use)
  • 2 Asset Finance Schedule Reconciliations
  • Includes Depreciation schedules & calculation
  • Includes Companies or Trusts who hold property or share portfolios
  • Fixing Bookkeeping Errors $85 / hr
  • Companies who have carried forward losses in excess of $100,000 ($55 additional)

* Taxopia Fastlane Service available

* Basic Package pricing conditions: ($425+ GST):
  • Includes up to 15-minutes of call support to assist you. Taxopia reserves the right to bill for any additional support that exceeds this time.
  • Excludes businesses with turnovers of more than $300,000 per year.
  • Excludes Companies or Trusts who hold property or share portfolios.
  • Excludes preparation of depreciation schedules and calculations.
  • Under this package, we do not accept summarised excel spreadsheets, unless your company turnover is below $30,000 per year. Financial data must come from an Accounting platform where either you can grant us access to generate the reports from, or you create the reports yourself and send them through to us.
  • Can accommodate Companies or Trusts who have carried forward losses in excess of $100,000 for an additional fee of 85$
  • Fixing Bookkeeping errors: an additional $85/hour will be charged

If you do not qualify for this option, you will need to consider our Standard Package ($850+ GST).

Get Started

Please note that ALL our plans exclude the following:

  • Capital Gains Tax events
  • Share Trading activities
  • Fixing GST errors
  • Companies who have Director(s) or Shareholder(s) loans owing to the company. (Division 7a)

Please contact us for a customised quote if you require help on any of the excluded items.

Additional Information:

Taxopia Fastlane Service

Need a fast turnaround? If you require your taxes to be completed faster, we have a premium Fast Lane option available for this package which puts your request at the front of the queue of our workflow.

*Excludes public holidays, weekends and office closure dates.

Contact Us