What records do sole traders need to keep?
Understand what records sole traders should keep for income, deductions, GST, and tax return purposes.
Summary
Sole traders need records that support their business income, expenses, tax return, and any other tax obligations. The ATO explains that businesses need records to meet tax, superannuation, and registration obligations.
What this means
Good record keeping makes it easier to prepare your tax return, support deductions, manage GST if registered, and respond if the ATO asks questions later.
Records may include invoices, receipts, bank statements, logbooks, contracts, loan documents, payroll records, and documents showing how business-use percentages were calculated.
Typical actions
- Keep records of all business income.
- Keep receipts and invoices for expenses.
- Keep logbooks or records for car-related claims.
- Keep records showing private versus business use.
- Use the ATO app or accounting software to organize records.
Official ATO sources
Last checked: 20 June 2026
Record keeping for business
Overview of business record-keeping requirements.
Detailed business record-keeping requirements
Explains detailed records businesses may need to keep.
Using myDeductions
Explains the ATO app tool for keeping income and deduction records.
Related questions
- What deductions can sole traders claim?
- Do sole traders need a separate business bank account?
- Can sole traders claim car expenses?
- Can sole traders claim home office expenses?
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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