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 – debts and losses cannot be shared.

As a sole trader, you use your individual tax file number (TFN) when you lodge your income tax return.

If you carry on an enterprise as a sole trader in Australia, you need an ABN for the sole trader and use it for all the business dealings. ABN is a single business identifier that allows businesses to deal with the Australia Taxation Office ( ATO) and other government agencies with one identifier.

Goods and services tax, often known as GST, is a broad -based tax of %10 on the most goods, services and other items sold or consumed in Australia. GST applies to most Australian business and it’s highly likely that your business will be affected by tax. As a member of a partnership, you can apply for GST registration for the your business if it is carrying on an enterprise. if your business is registered for GST, you’ll have to pay to collect some extra money (one-eleventh of the sale price) from your customers and pay it to the Australian Taxation Office when it is due.
You must register for GST if:
• your business has a GST turnover of $75 000 or more
• your non-profit organisation has a turnover of $150 000 per year or more
• you provide taxi travel for passengers in exchange for a fare as part of your business, regardless of your GST turnover. This rule applies to both taxi owner drivers and people who just rent a taxi
You can register for goods and services tax (GST) if you carry on an enterprise.

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


SBA Accounting is a number one choice of the small business owner, including self-employed sole traders, partnerships, and small limited companies. We promote our services through site exposure, marketing, the development of brand awareness, and enthusiastic service.

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