Australia
Tax & records in Australia
Keep clear business records and check which income-tax, ABN and GST responsibilities apply to your structure and circumstances.
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1. Understand sole-trader reporting
A sole trader reports business income and eligible business expenses through their individual tax return. You do not need to incorporate solely to operate as a sole trader.
2. Check whether you need an ABN
An Australian Business Number identifies a business to government and others. Not everyone is entitled to or needs one, so check the official eligibility guidance for your activity.
3. Check GST registration
Businesses generally must register for GST when their GST turnover reaches A$75,000 or more. GST turnover is business income for GST purposes, not profit, and is calculated under the official rules.
If your business reaches the threshold, check when you need to register and start meeting GST reporting obligations.
4. Keep good records
Keep appropriate records for income, sales, business expenses, stock, bank transactions and GST where applicable.
Most business records need to be kept for five years, although some records have longer requirements. Check the official guidance for your circumstances.
Official guidance
Use the latest official guidance for your circumstances before making tax or financial decisions.
General information only — not tax or financial advice. Tax rules depend on your circumstances and can change. Check the latest official guidance or speak to a qualified adviser.