Sole Trader - complete guide

This article is currently under construction

 

 

Asset Protection
If your business structure is a 'Sole Trader' you won't have any asset protection

Of course you'll have the necessary insurances but this may not be enough

If you have assets worth protecting (eg house) consider:
-trading under a company as it offers limited asset protection
-moving assets out of your name - stamp duty and capital gains tax may apply

 

Income

 

Expenses

Small Business Entities (SBE) can generally claim everything they spend on the business, except expenses which are of a private or capital nature

If sales under $75,000 / not registered for GST you can use our free excel cashbook - click here for the latest version

Expenses which are of a private nature include:
-meals, snacks etc
-business meetings
-alcohol unless client gift
-clothing unless protective 

Capital Items / Depreciation
-for the 2024 tax year anything under $20,000 is immediately written off - anything over $20,000 is added to the general asset pool and depreciated @ 15% in year 1, then 30% in year 2 onwards

The following cannot be claimed as a tax deduction:
-fines
-entertainment (unless it is a fringe benefit)

If you have employees you can claim for staff amenities but take care as fringe benefits attract fringe benefits tax

Also check out the ATO https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/

Record Keeping

We recommend www.xero.com.au

 

Tax

 

GST

refer to our article 'Do I need to register for GST'

 

Employing workers

 

PSI

 

 

Buying a business

 

Selling a business

 

Other