Small business tax 101:
The ultimate guide

No nonsense, just savings: for sole traders, freelancers and anyone self employed

Updated for the 2023-2024 tax year
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Taxes can be a real headache...

For all small businesses, but especially sole traders, the End of the Financial Year (EOFY) can feel overwhelming. Balancing daily operations while managing business expenses, PAYG instalments, and BAS obligations can be challenging.

But don’t worry – we’ve got your back.

SoleApp functions as a dedicated BAS app for Australians, offering all the tools and resources you need to run a successful freelance business in Australia, including this handy guide.

Tax is easier for Aussie businesses with Sole

Small businesses and sole traders across Australia are required to make payments throughout the year. We at Sole are here to support Aussie businesses, answer your questions, and give you a helping hand.

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Manage your tax easily with Sole app

Automatic Tax Estimates: Know your tax obligations without the guesswork.

GST Tracking and BAS Preparation: Simplify your tax tasks.

Instant Tax Reports: Access detailed insights anytime.

Comprehensive Income and Expense Breakdowns: Keep a clear view of your finances.

Secure Data Sharing with Accountants: Seamless collaboration with your tax professional.

Attach Receipts to Expenses: Keep all your documents in one place.

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Frequently asked questions

    Do I have to lodge a BAS if I’m not registered for GST?

    Usually, no. However, if the ATO enters you into the PAYG installment system (even if you aren’t GST-registered), you will still need to lodge an activity statement to report and pay those tax installments.

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

    For the 2025–2026 income year, the government has extended the $20,000 instant asset write-off. If your business turnover is under $10 million, you can immediately deduct the full cost of eligible assets (like a new laptop or tools) that cost less than $20,000, provided they are used or installed by 30 June 2026.

    What are the tax brackets for 2025–2026?

    The “Stage 3” tax cuts are fully in effect for this year. For residents, the rates are:

    • $0 – $18,200: 0%
    • $18,201 – $45,000: 16%
    • $45,001 – $135,000: 30%
    • $135,001 – $190,000: 37%
    • Over $190,000: 45%

    Why is my ATO estimate different from my actual earnings?

    The ATO usually bases your PAYG installments on your last lodged tax return. If your business has slowed down or significantly grown since then, the estimate will be inaccurate. You can “vary” your installments on your BAS if you know your income will be different to avoid overpaying or underpaying.