Who This Guide Is For
This guide covers reporting obligations - not tax rates or deductions. For tax rates and what you can claim, see the Sole Trader Tax Guide.
You're self-employed and lodging your own return
You want to know what to lodge and when
You're not sure whether that's a job for myGov, the ABR, or ASIC
You want to know what records you actually need to keep
30 June is coming up and you want to prepare
You're wondering whether to stay sole trader or go company
Looking for tax rates and deductions? See the Sole Trader Tax Guide →
What You Actually Have to Lodge
Three obligations, not more - and which ones apply to you depends on whether you're GST-registered and whether the ATO has put you on instalments.
Individual Tax Return
A business and professional items schedule attached to your personal tax return. This one applies to every sole trader, every year - even in a loss year, and even if your income sits under the tax-free threshold.
BAS (If GST-Registered)
A Business Activity Statement, lodged quarterly for most sole traders. Only applies once you are registered for GST - you charge 10% and remit it through the BAS, not through your income tax return.
PAYG Instalments
Advance payments toward next year’s tax bill, paid through the year rather than as one lump sum. You only make these if the ATO has enrolled you - it happens automatically once you cross certain income and tax thresholds, or you can opt in voluntarily.
There is no separate "business return" for a sole trader in Australia - everything routes through your personal individual tax return.
myGov, ATO Online, ABR, ASIC - Who Holds What
Four portals, not two - and knowing which one to open saves the ten minutes you'd otherwise spend guessing.
myGov
my.gov.au
Your login layer, not a tax portal on its own. Link the ATO service inside myGov and it opens the door to ATO online services below.
ATO Online Services
Accessed through myGov
Where the actual work happens: lodge your tax return, lodge your BAS, check what is owed or refunded, set up PAYG instalments, update your bank details.
ABR
abr.gov.au
The Australian Business Register - this is where your ABN lives. See our ABN invoicing guide for how to get one and where it has to appear on an invoice.
ASIC
asic.gov.au
Holds your registered business name, if you have one. Only needed if you trade under anything other than your own first and last name.
The rule people trip on
You do not need to register a business name if you trade strictly under your own first and last name - "John Smith" needs nothing. The moment you add anything to it - "John Smith Gardening" - you need to register that name with ASIC. Trading under an unregistered name is an offence.
31 October, the Four BAS Quarters, and PAYG
Australia's financial year runs 1 July to 30 June. Here are the dates that actually apply to a sole trader.
1 July
New Financial Year Starts
The financial year begins. Start fresh income and expense tracking.
28 October
BAS Q1 (Jul-Sep)
Quarterly BAS for July-September, if you're GST-registered. Lodging online can get you an extra two weeks.
31 October
Tax Return Deadline (Self-Lodged)
Your individual tax return, including the business and professional items schedule. Using a registered tax agent can push this out - but you generally need to be on their books before 31 October for that later date to apply.
28 February
BAS Q2 (Oct-Dec)
Quarterly BAS for October-December.
28 April
BAS Q3 (Jan-Mar)
Quarterly BAS for January-March.
30 June
Financial Year Ends
The financial year closes - a good time to reconcile income, expenses, and GST before the next BAS and your return.
28 July
BAS Q4 (Apr-Jun)
Quarterly BAS for April-June, the last of the financial year.
PAYG instalments: you are generally brought into the system automatically once your instalment income and the tax payable on your last return both cross the ATO's thresholds - you can also opt in voluntarily. Check ATO online services for your own enrolment status and payment dates.
Reconciling GST before you lodge a BAS? Use the free GST Calculator →
Records: 5 years, and What That Means in Practice
The ATO requires most business records to be kept for at least 5 years, from whichever is later - when the record was made, or when the transaction it relates to was completed.
Sales Records
- Invoices you issued to clients
- Receipts of payment received
- Bank statements showing income deposits
- Contracts for work done
Purchase Records
- Receipts and invoices for business purchases
- Tax invoices for GST claims
- Vehicle logbook, if claiming vehicle use
- Records supporting any other deduction
Bank & Financial Records
- Business bank account statements
- Loan documents if business-related
- Credit card statements for business expenses
- Records of any asset purchases
BAS & GST Records (If Registered)
- Every BAS lodged, with the workings behind it
- Tax invoices received and issued
- Records of any GST adjustments or corrections
- Copies of ATO correspondence
Not the Same Number Everywhere
5 years is the ATO's figure for a sole trader's own business records - not New Zealand's seven years, and not the seven years ASIC requires of companies. If a guide you are reading says seven years, check whether it was written for a different structure or a different country before you trust the number. There are some situations where the ATO expects records kept longer than 5 years - check ato.gov.au if a record relates to an asset you still own or a dispute that is still open.
Want to know exactly what a valid tax invoice needs to show? See the tax invoice requirements guide →
Getting Ready Before 30 June
Before you lodge, run through these five checks so your figures are accurate and complete.
Every invoice you issued is accounted for
Cross-check the invoices you sent against your income records - a job you did but never invoiced is easy to lose track of once the year is behind you.
Paid and unpaid are clearly separated
Know which invoices are actually paid versus still outstanding. What you've been paid and what you've merely invoiced are different numbers, and only one of them belongs in a bank reconciliation.
GST on invoices matches what went into BAS
If you are GST-registered, the GST you charged across the year should reconcile with the GST you reported quarter by quarter. A gap here is worth finding before the ATO finds it for you.
Expenses are gathered and categorised
Pull together receipts and invoices for the year's business purchases. See what you can actually claim if you are not sure a cost qualifies.
Reconcile the Bank Last
Once invoices, payments, and expenses are sorted, check them against your bank statements. Invio keeps the invoices you have issued and the expenses you have logged in one place, so this step is a matter of exporting a financial-year total rather than reconstructing it from a shoebox.
Sole Trader or Company - When the Reporting Load Changes
A short, honest comparison - not a recommendation.
Sole Trader
- The simplest and cheapest structure to run
- Minimum ongoing compliance and reporting
- You're taxed at personal income tax rates
- You are personally liable for everything the business owes
Most Australian tradies and freelancers stay sole trader for years - it is the default for a reason.
Company
- A separate legal entity from you personally
- Limited liability - the company owes its own debts
- More reporting: ASIC filings, company tax return, more accounting cost
- You'll generally need a new ABN if you convert from sole trader
Also worth noting: any registered business name has to be transferred to the new structure - it does not move on its own.
Sole traders are not automatically covered the way an employee is if they are injured and cannot work - workers' compensation does not cover a sole trader themselves, and the rules vary by state. Some sole traders choose their own income protection cover instead; whether that makes sense for you depends on your state and your circumstances, so check business.gov.au or ask your accountant.
This is a structural summary, not a recommendation - whether to incorporate depends on your income, your risk, and your plans, and that conversation belongs with your accountant.
Common Questions
What does an Australian sole trader need to lodge?
What is myGov and how does it connect to ATO online services?
Do I need to register a business name?
How long do I need to keep business records in Australia?
When is my tax return due, and does using an agent change that?
Should I stay a sole trader or become a company?
Does Invio help with any of this?
This is general information, not tax advice. What applies to your situation depends on your circumstances - check ato.gov.au or ask your accountant before you lodge anything you are unsure about.