Tax guide: Filing Your Tax Return

STEP 6 | Small business tax 101

Learn how to manage and pay GST effectively.

Key takeaways:

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Powerful accounting apps Australia for sole traders offering automated financial tracking and accurate tax calculations.

Checklist for Filing Your Sole Trader Tax Return

Gather all income records, including invoices and sales receipts.

Compile expense records such as receipts for business purchases and operating expenses.

Calculate your total income and deductions accurately to determine taxable income.

Review GST records and ensure BAS filings are up to date.

Consider any industry-specific deductions that may apply to your business.

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Consult with a Professional

Ensuring your tax return is accurate and compliant can be complex. Consider consulting with a professional accountant or tax advisor. Sole supports sole traders in finding local accountants through our listing site here and our partnership with Accountants Direct here.

Link to Start Filing Your Tax Return

Ready to file your tax return? Visit the ATO’s website to lodge your tax return online using myTax: ATO Lodge Your Tax Return Online

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Frequently asked questions

    When is the absolute deadline to file my 2025-26 tax return?

    It depends on how you lodge. If you are self-lodging via myTax, your deadline is 31 October 2026. If you use a registered tax agent (like our partners at Accountants Direct), you must be on their books by 31 October, but your actual filing deadline is typically extended to 15 May 2027.

    What documents do I need to “gather” for my income records?

    You need more than just your bank balance. You should have:

    • All Sole invoices sent (paid and unpaid).
    • Records of any other income (salary from a side job, bank interest, or government payments).
    • A summary of your GST collected, which you can pull directly from your Sole reports.

    Can I claim a deduction for a “Work-from-Home” lunch or coffee?

    Generally, no. The ATO considers daily meals a private expense. However, if you are traveling overnight for a business trip or attending a seminar, those meals may become deductible. Always check the “Travel and Subsistence” rules for your specific industry.

    What is the “Instant Asset Write-Off” for 2026?

    For the 2025–26 financial year, the Instant Asset Write-Off threshold is $20,000. If you buy a piece of equipment for your business (like a computer or specialized tools) that costs less than $20k, you can claim the full deduction this year instead of spreading it out over several years.

    Should I file even if I didn’t make a profit this year?

    Yes. If you carried on a business, you must lodge a tax return even if your income was zero or you made a loss. Reporting a loss can actually be beneficial, as you may be able to “carry it forward” to reduce your tax bill in future, more profitable years.

    How does Sole’s partnership with Accountants Direct work?

    Sole makes your data “Accountant-Ready.” You can securely share your financial reports directly from the app, which saves your accountant time and saves you money on billable hours. Professional oversight ensures you’re not just compliant, but that you haven’t missed any “hidden” deductions.