Situations we sort out
Sole trader tax, without the year-one surprise.
Nothing is withheld from ABN income. The tax still arrives — as a bill, at lodgment — unless someone has planned for it. We prepare sole trader returns from reconciled records and tell you what is coming before it comes.
The first ABN year catches people the same way every year. Wages had tax withheld before they arrived; business income does not. Invoices get paid in full, the money gets spent, and the tax on it surfaces months later as a single bill. None of this is a trap — it is simply how the system treats business income — but it rewards the people who plan for it.
Our part is the file. Business schedules are prepared from reconciled records — income tied to invoices and bank deposits, expenses substantiated before they are claimed, the private-use portions written down rather than guessed. A shoebox estimate can be lodged in an afternoon; it just cannot be defended later. We build the version that can.
Whether GST registration applies to you depends on your circumstances, and it is a question to answer deliberately rather than discover late. We confirm the position, put the reasoning in writing, and set up records that make next year simpler than this one. From our Brisbane base, by phone and video Australia-wide.
What we see on sole trader returns
- First-year ABN income spent in full, with nothing set aside for the tax that follows it.
- Business schedules built from a shoebox and a memory rather than a reconciled ledger.
- Personal and business spending running through one account, with no basis for the split.
- GST registration never considered — or done early, then ignored every quarter since.
What we do for sole traders
Schedules from reconciled records
Income tied to invoices and bank deposits, expenses to their receipts — the schedule agrees with the bank before the return is drafted.
Deductions substantiated first
Each claim tested against the record that supports it, with private use apportioned and the basis written down at the time.
Planning for the tax bill
The position is estimated while the year is still running, so money is set aside in time and the assessment arrives as an expected number.
GST registration, confirmed
Whether you must register turns on your circumstances. We confirm the position, handle the registration if it applies, and file the reasoning.
Instalments managed
When the ATO moves you onto instalments, we check each one against how the year is actually running — and vary it on evidence where the rules allow.
Records that keep themselves
A separate account, a portal for documents and a routine for receipts — set up once, so next year's file builds itself through the year.
A sole trader file built here can answer for itself: income reconciled to the bank, deductions substantiated, and the GST position confirmed in writing before anything is lodged. See our method →
Common questions
Why did my first year on an ABN end in a tax bill?
Because nothing was withheld along the way. Employers take tax out of wages before you see them; clients pay invoices in full. The tax on business income is still owed — it simply arrives later, in one figure. The fix is planning: we work out what the year is producing while it is still running, so the amount is set aside before it is asked for.
Do I need to register for GST?
It depends on your circumstances — the rules turn on the nature and scale of what you do, and there are cases where registering voluntarily makes sense. We confirm whether registration applies to you, handle it if it does, and record the basis so the position is documented either way.
What records should I be keeping as a sole trader?
Invoices you issue, evidence for what you spend, bank statements that reconcile to both, and a written basis for anything used partly for private purposes — a logbook if a vehicle is claimed. Kept as you go, this is minutes a week. We set the system up with you so the records exist when the return needs them.
I have wages as well as ABN income. How does that work?
Both go in the one return. The wage income arrives with tax already withheld; the business income does not, which is where the planning matters. We report each stream, allocate deductions to the income they belong to, and reconcile the whole return against what the ATO already holds about you.
Can you sort out late years as well as this one?
Yes. We confirm with the ATO which years are outstanding, rebuild each from prefill and bank records, and lodge oldest-first so the file holds together. Where circumstances support it, remission of penalties and interest is requested in writing. The catch-up ends with a record system in place, so the pattern does not repeat.
What does a sole trader return cost?
It depends on the state of the records — a reconciled file and a shoebox are different engagements. Fees are quoted in writing before work starts, so you decide with the number in front of you. If the records need rebuilding first, we say so and price that stage separately.
General information only — not tax, legal or financial advice. Advice specific to your circumstances is provided within a signed engagement.
Related reading
Speak to the person who signs the return.
Consultations are with a registered tax agent — by phone or video, wherever you are in Australia.