Sole Trader Tax: The Ultimate Guide

For Australian freelancers and sole traders

Updated for the 2023-2024 tax year

New updates for 2024

Already know how to do your tax return, but just want to see what’s changed? Click here.

Let’s face it – no one likes doing taxes.

But for freelancers and sole traders, the End of the Financial Year can be especially daunting. You have to maintain day-to-day operations while figuring out things like business expenses, PAYG instalments, and banking activity statements.

We’re here to help.

Rounded brings together all of the tools and resources you need to manage a successful freelance business in Australia, including this guide.

Profile photo of Holly Shoebridge (Accountant) smiling

We teamed up with CPA & registered tax agent Holly Shoebridge, of Oceans Accounting + Advisory, to answer your sole trader tax FAQs and guide you through the process of paying tax as a sole trader.

Before you get started...

This guide includes all of the essential information you need to pay your sole trader tax, but everyone’s tax situation is unique. 

This guide does not constitute financial advice, and we strongly recommend consulting a tax professional for advice tailored to your individual circumstances.

Sole trader tax is easier with Rounded

Automatic tax estimates

GST tracking and BAS preparation

Instant Tax Reports

Detailed income and expense breakdowns

Securely share data with accountants

Attach receipts to expenses

Try Rounded for free
Access all feature for 14 days. No credit card needed.

I love that I can quickly find the $ info I need for my BAS and give my accountant access to Rounded for the yearly tax return. I also love that because Rounded is an Australian company they know what GST is all about. Highly recommended!

Tess McCabe
Tess McCabe Graphic Designer

As a sole trader, tax used to be something I dreaded. I hated doing my business activity statement and keeping track of my PAYG instalments. But with Rounded, I barely have to do anything! It takes about 30 seconds to pop the numbers into my BAS, and all I have to do for my income tax return is share access to my account with my accountant.

Aimie Whiting
Aimie Whiting Personal Trainer

Rounded has made my life so much easier! Invoicing clients is a breeze and my clients now pay me quickly. Tracking expenses as I go makes tax time way less time consuming. And as a newbie to charging GST, BAS is so simple and pain-free.

Joh Kohler
Joh Kohler