Your 2026
sole trader
return.
As a sole trader, there is no separate company return. Your business income, expenses, and deductions all flow into a single individual return with a business schedule attached. Done properly, this is an opportunity to legitimately reduce your tax. Done poorly, it is one of the most commonly reviewed areas by the ATO.
We handle the full picture: your business schedule and your personal return, reviewed and prepared under a registered tax agent supervision programme.
Email us to get startedWhat your return covers.
Your return is more than a lodgment. It is a review of every deduction available to you and a check on your obligations for the year ahead.
Individual return with business schedule
Your personal income tax return includes a business income and deductions schedule. Both are prepared together and reviewed as a whole.
Business Activity Statements
Quarterly or monthly BAS lodgment. If you are not yet registered and approaching $75,000 turnover, registration timing matters.
PAYG Instalments
If your tax liability exceeds the ATO threshold, you will be moved onto quarterly PAYG instalments. We manage the amounts and due dates.
Taxable Payments Annual Report (TPAR)
If you pay contractors in building, cleaning, courier, IT, or security, a TPAR is due 28 August each year. Non-lodgment attracts penalties.
Single Touch Payroll and Super
Payroll finalisation via STP by 14 July, and super guarantee contributions (11.5% for 2025-26) must be paid and reported correctly.
What to have ready
Business income
- Accounting software access (Xero, MYOB, QuickBooks) or a summary of income
- Bank and credit card statements for the full year
- Cash income records if applicable
- Any government grants or JobKeeper-type payments received
Business expenses
- Vehicle log book and fuel or running costs
- Home office records (hours worked, method used)
- Tools, equipment and technology purchased
- Subcontractor payments and invoices
- Professional subscriptions, insurance, training
- Loan and equipment finance statements
Personal income
- Income statement from any employment
- Bank interest, dividends and managed fund statements
- Rental income and expenses (if applicable)
Other
- Notice of Intent to claim super deduction (if making personal contributions)
- Private health insurance statement
- Any ATO correspondence or notices received
- Prior year return and financials if you are a new client
What the ATO is watching.
The ATO has flagged specific focus areas for sole traders in 2026. These are the areas most likely to attract a review or a data-matching flag.
Cash income and benchmarks
The ATO uses industry benchmarks to assess whether your declared income is consistent with businesses of your type and size. Cash-heavy industries are under heightened scrutiny.
Home office claims
Contemporaneous records are now required, not estimates. If you work from home, you need a log of hours and substantiation of costs, or you use the ATO fixed rate method with diary evidence.
Vehicle deductions
Vehicle claims remain one of the most audited areas for sole traders. A 12-week log book is required for the actual cost method. The cents-per-km rate applies up to 5,000 business kilometres.
Employee vs. contractor
The ATO has updated its guidance on worker classification. If you pay workers under an ABN, the arrangements need to be reviewed. Misclassification carries back-pay, super, and penalty obligations.
Crypto and digital assets
Every disposal of crypto is a CGT event. The ATO data-matches with exchanges. If you have traded, sold, or used crypto to purchase goods, it must be reported in your return.
TPAR lodgment
Taxable Payments Annual Reports are due 28 August. Businesses in building, cleaning, courier, IT, and security that pay contractors must lodge, regardless of whether a return has been requested.
Ready to get your 2026 sole trader return sorted?
Email us with a brief description of your situation and we will come back to you with next steps and pricing. No obligation.