Sole Trader Tax: The Ultimate Guide
New updates for 2025
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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.
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.
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Step OneSole Trader Tax: Glossary and Dates
Essential information you need before you start -
Step 2Calculating your taxable income
Track how much tax you’ll owe and plan ahead -
Step 3What can I claim on tax as a sole trader?
How to use business expenses to cut down on your tax bill -
Step 4Sole trader GST
Learn how to collect and pay GST -
Step 5BAS & PAYG for sole traders
Pay taxes throughout the year to make EOFY easier -
Step 6Checklist for filing your sole trader tax return
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
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!
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.
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.
