What is a sole trader?
A sole trader is an individual operating a business. This can include contractors, freelancers, delivery workers and other ABN income activities.
What to prepare
- Total ABN income
- Invoices, platform reports and bank deposits
- Business-related expense receipts
- Work-use percentages for mixed private and business costs
- Income Statements if you also have employment income
Expense records
Phone, internet, vehicle, equipment, advertising, software and platform costs may need to be reviewed if they are connected to earning business income.
If you have both TFN salary and ABN income, both income types need to be included in your tax return.