How does a sole trader lodge a tax return?
Understand how sole traders report business income and lodge a tax return.
Summary
Sole traders report business income and expenses in their individual tax return, along with any other personal income. There is no separate business tax return for a sole trader.
What this means
As a sole trader, your business income is part of your individual assessable income. You lodge one tax return that covers your business results, employment income, investment income, and any other income for the year. A business and professional items schedule is included in the return to capture business details.
You can lodge your return online using myTax, through a registered tax agent, or on paper. If you are carrying on a business as a sole trader, you generally still need to lodge an individual tax return even if your business income is below the tax-free threshold. Business income and expenses are reported in the business sections of the return, with the Business and professional items schedule used where required.
Typical actions
- Keep clear records of business income and expenses throughout the year.
- Reconcile your business records at year end.
- Choose how you will lodge – myTax, tax agent, or paper.
- Complete the business information required by myTax, or the Business and professional items schedule where applicable.
- If you lodge your own return, the usual deadline is 31 October; registered tax agents may have different lodgement dates.
Official ATO sources
Last checked: 24 August 2026
Income tax return
Explains how business income is reported in the individual tax return.
Business, partnership and trust income
Explains how sole traders declare business income.
Lodge your tax return online with myTax
How to lodge your tax return online through myTax.
Related questions
- How is sole trader income taxed?
- What deductions can sole traders claim?
- What records do sole traders need to keep?
- Do sole traders pay PAYG instalments?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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