What a tax accountant does for sole traders
A good tax accountant for sole traders focuses on the practical work and the timing around it. That starts with a quick review of your structure, registrations, software and current records, then moves into a clear plan for compliance and tax efficiency.
- Registrations and setup: ABN check, GST registration threshold, PAYG instalments, and business name alignment.
- Bookkeeping review: bank feeds, coding rules, receipts storage, and year‑end adjustments.
- BAS and GST: preparing, reviewing, and lodging BAS on time with proper GST treatment.
- Tax return: sole trader schedules (business income/expenses), depreciation, small business concessions.
- Deductions: substantiation for vehicle, home office, tools/equipment, phone/internet, training and insurance.
- ATO support: payment plans, variations, notices, and audit responses.
How the process usually works
The workflow typically has three stages so you know what happens and when:
- Immediate triage: fix urgent issues such as overdue BAS, ATO letters, missing receipts or incorrect GST coding.
- Process design: streamline software, set coding rules, automate bank feeds, and document how you’ll send records.
- Ongoing review: quarterly check‑ins for BAS and cash flow, then year‑end planning and your tax return lodgement.
For many sole traders, small changes—like a compliant vehicle logbook or better receipt capture—deliver the largest tax and time savings.
Australian rules to keep in view
- GST registration is compulsory when turnover reaches $75,000 (or immediately for rideshare/taxi). Once registered, charge 10% on taxable sales and lodge BAS.
- PAYG instalments may start after your first profitable year—vary instalments if conditions change to manage cash flow.
- Personal Services Income (PSI) can restrict deductions and income splitting—get this tested if most income is for your personal efforts.
- Super for sole traders is voluntary but often tax‑effective—deductions require a valid notice to your super fund.
- Check a tax agent’s registration with the Tax Practitioners Board and confirm their experience with businesses like yours.
Common deductions and records for sole traders
Motor vehicle
Keep a 12‑week logbook to claim business‑use percentage of fuel, rego, insurance, servicing and depreciation. Without a logbook, claims are limited.
Home office
Choose the correct method (fixed rate vs. actual cost) and keep records for hours, energy, internet and eligible occupancy costs if applicable.
Tools & equipment
Track asset purchases and apply instant asset write‑off or temporary full expensing where eligible and available for that income year.
Phone & internet
Use a reasonable business‑use percentage backed by itemised records or documented calculations.
Insurance & subscriptions
Professional indemnity, public liability, software, industry memberships and training directly related to your work are typically deductible.
Super contributions
Personal contributions can be deductible if you lodge a valid notice of intent; watch timing and annual caps.
What to compare before you commit
Scope
Ensure the proposal covers your actual needs—BAS, tax return, catch‑up bookkeeping, software setup, ATO support and tax planning.
Software fit
Look for deep experience in your platform (Xero, MYOB, QuickBooks). Ask how they automate bank feeds, rules, and receipt capture.
Turnaround & communication
Confirm response times, busy‑season turnaround, and how urgent matters are escalated.
Pricing
Compare fixed fees vs. hourly, inclusions (BAS, tax return, advice), and the rhythm of check‑ins so there are no surprises.
Typical timelines and deadlines
- BAS lodgement: monthly or quarterly depending on registration and turnover.
- Tax return: 31 October if you self‑lodge; agent clients often receive extended deadlines.
- PAYG instalments: usually quarterly—coordinate with BAS to manage cash flow.
- Record‑keeping: retain for at least five years in case of ATO review.
Best next steps
Write down the exact outcome you want: catch up BAS, claim the right deductions, fix GST coding, set up PAYG instalments correctly, or move to better software. Then shortlist providers against that outcome and confirm scope, timelines and fees in writing.
Use the links on this page to move into the most relevant subtopic or to connect with a provider who works with Australian sole traders every day.
Frequently asked questions
What does a tax accountant for sole traders usually involve?
They review your records and registrations, handle BAS and your sole trader tax return, advise on deductions, manage PAYG instalments and provide ATO support. The exact scope depends on your turnover, software and complexity.
Do I need to register for GST?
Register when your GST turnover reaches $75,000 or if you drive a rideshare/taxi. Some sole traders register earlier to claim input tax credits. Once registered, you must charge GST on taxable sales and lodge BAS.
How much does it cost?
Simple sole trader tax returns often range from $250–$600, more complex cases from $800+. Quarterly BAS reviews can be $120–$300 each. Always confirm inclusions and whether advice is bundled or separate.
What should I bring to my accountant?
Bank statements, invoices/receipts, a current vehicle logbook, asset purchase details, home office calculations, phone/internet usage, insurance, super contributions, and any ATO letters or prior returns.
Can a sole trader claim home office expenses?
Yes. Choose the correct method (fixed rate or actual costs) and keep required records of hours and expenses. Your accountant can calculate which method gives the best outcome.
Is my accountant’s fee tax deductible?
Yes. Fees for managing your tax affairs are generally deductible in the year you pay them.
What should I read next?
See the related pages for deeper topics like capital gains tax, contractor rules and business tax options, or head to the help centre for specific questions.