Australia — Sole Trader & Self-Employed Tax Return (myTax / Tax Agent)

Confirm the client's ABN is active, determine whether they are registered for GST (mandatory if turnover ≥ $75,000), and establish their accounting method (cash vs accrual). Identify any business structures beyond sole trader (e.g. trust or Pty Ltd) and flag PSI (Personal Services Income) risk under Divisions 86–87 ITAA 1997.

Reconcile all quarterly or monthly Business Activity Statements (BAS) lodged during the year. Confirm GST collected on sales equals amounts reported; verify input tax credits claimed on business purchases are supportable. Identify any outstanding BAS liabilities or credits before preparing the income tax return.

Compile total assessable business income (gross invoices, cash receipts, minus GST component) and all deductible expenses under s 8-1 ITAA 1997. Apply the non-commercial loss rules (Division 35) if the activity produced a loss, checking whether the $20,000 income test, profitability test, real property test ($500,000), or other assets test ($100,000) is satisfied. Flag home-office running expenses at 67c/hour (revised method from 1 July 2022) and motor-vehicle claims (logbook or cents-per-km at 85c/km up to 5,000 km).

Identify all depreciable assets used in the business. Apply the instant asset write-off (< $20,000 per asset, first used or installed ready for use by 30 June 2026, for businesses with aggregated turnover < $10m). Assets ≥ $20,000 enter the small business simplified depreciation pool at 15% (first year) then 30% declining balance. Pool balances below $20,000 at 30 June can be written off entirely. For general (non-SBE) taxpayers, apply diminishing-value or prime-cost method per ATO Tax Ruling TR 2024/3 effective-life schedules.

Calculate the personal concessional super contribution the sole trader can claim as a deduction (s 290-150 ITAA 1997, Notice of Intent to Claim form required). The concessional cap is $30,000 for 2025–26. Check whether carry-forward unused cap from prior years is available (requires total super balance < $500,000 at prior 30 June). Assess Division 293 liability if total income + concessional contributions exceed $250,000 (additional 15% tax on contributions). Flag government co-contribution eligibility if income is below $45,400.

Prepare the complete Individual Tax Return (ITR) including all income items (business profit/loss at Item 15, salary/wages, investment income, government payments), total deductions, Medicare levy (2%), and Medicare Levy Surcharge (1%–1.5% if income > $101,000 and no private hospital cover). Cross-check PAYG instalment credits (from the ATO instalment activity statements lodged during the year) against the final liability. Calculate the final tax payable or refund position.

Present the final tax position to the client for review and approval prior to lodgement. Confirm the lodgement deadline: 31 October for self-lodgers via myTax; agent-managed clients on the tax agent lodgement program may have a later due date. Ensure any tax debt or refund is communicated clearly, and set up a payment plan with the ATO if needed (via myGov or the ATO app). Archive all workpapers and source documents for five years per s 262A ITAA 1936.