Get organised early to make the end of the financial year straightforward. This short guide sets out the must‑know obligations if you run a business as an individual. It covers lodging requirements, record keeping and steps that help you save time and reduce your tax bill legally.

As a sole trader you are taxed at personal rates and must lodge a return each year, even if your income sits below the tax‑free threshold. Keep clean, digital records for at least five years and separate business and personal transactions from day one.

Plan before 30 June to maximise deductions and avoid surprises. PAYG instalments may apply after your first return showing tax payable, so forecasting helps protect cash flow. Seek professional advice if you’re unsure — a quick chat with an accountant can clarify next steps.

Key Takeaways

Begin planning before year‑end to lock in the best outcomes.
Maintain digital records and keep business accounts separate.
Expect to lodge annually and watch PAYG instalment triggers.
Know what deductions you can claim and document them.
Contact Kingsman Accountants for tailored professional advice.

Start strong: what sole traders should focus on this financial year

Begin the year with a simple financial roadmap to protect cash flow and spot deductions. Small actions now make the end financial year easier and can reduce what you pay.

Why planning early reduces stress and your tax bill

Plan income and expenses and list documents you will need for your return. Use tech to snap receipts and store clean, labelled records so reconciliations stay quick.

Bring forward genuine deductible expenses where appropriate. This gives more options than leaving decisions until the last week of the year and lowers audit risk.

“A short pre‑EOFY review often reveals missed deductions and cash‑flow fixes.”

Contact Kingsman Accountants for tailored advice before 30 June

Speak with a certified tax agent or accountant if your turnover is rising. They can check thresholds, instalment exposure and registration needs.

Map expected income and expenses.
Snap and store receipts weekly.
Book a pre‑EOFY review with Kingsman Accountants.

Action	Why it matters	When to do it
Record receipts digitally	Speeds lodgement and proves deductions	Weekly
Forecast income	Prepares you for instalments and cash flow	Quarterly
Pre‑EOFY review	Identifies last‑minute opportunities	Before 30 June

Set up right: structure, registrations and tax basics for sole traders

Correct registrations and a clear structure make it easier to run your business and meet your obligations.

TFN, ABN and GST registration

Keep your individual TFN and apply for an ABN if you invoice customers or want to avoid PAYG withholding on some payments.

If your annual turnover reaches the $75,000 threshold you must register for GST. Missing that window can lead to penalties, so track turnover closely.

PAYG instalments

The ATO usually brings you into PAYG instalments after your first personal return shows tax payable above a trigger level.

Plan for instalments to smooth cash flow and avoid surprises during the year.

Sole trader vs company

A sole trader pays tax at personal marginal rates on net business income included in the personal return. A company pays corporate tax and distributes profits separately.

Keep business and personal costs separate. Only include genuine business expenses in your claim and apportion mixed-use items with records.

“Register correctly from day one and review structure as your business grows.”

Apply for an ABN, keep your TFN private, and monitor the GST threshold.
Record all business income and only business expenses in your return.
Ask Kingsman Accountants whether your structure still suits growth and risk plans.

Requirement	When it applies	Practical action
ABN	When invoicing or trading	Apply online and use on invoices
GST registration	Annual turnover ≥ $75,000	Register promptly to avoid penalties
PAYG instalments	After a return shows tax payable	Forecast instalments and set aside funds

Records that save you tax: banking, receipts and accounting software

Treat record-keeping as a regular habit to protect claims and streamline BAS and returns. Small, consistent actions make end-of-year work lighter and reduce risk when the ATO reviews your files.

Use a dedicated business bank account to separate business and personal

Open a business bank account and use it for every sale and purchase. A single bank account keeps reconciliations quick and makes it easier to prove business income and expenses.

Digital record-keeping: what to keep for five years and how to store it

Keep digital copies of receipts, invoices and contracts for at least five years. Without records you generally can’t claim an expense if asked to show evidence.

Logbooks and mixed-use items

Keep a vehicle logbook or a usage diary for phones and other mixed-use items. Record the business proportion clearly so you can justify claims.

Save time with accounting software

Adopt simple accounting software that scans receipts, auto-matches bank transactions and produces BAS and return reports. Set aside a short weekly admin slot to reconcile and label documents so you save time at lodgement.

Reimburse any business expense paid personally from the business bank account to create an audit trail.
Track debtors, creditors and asset purchases to support depreciation claims.
If in doubt, contact Kingsman Accountants for a tailored checklist and storage system.

Record	Why keep it	How long
Receipts & invoices	Prove expenses claimed	5 years
Bank statements	Audit trail for income	5 years
Logbooks	Show business use of vehicles	Continuous records as required

2025 tax time tips for sole traders

A clear list of deductible items helps you spot genuine claims and avoid mistakes at year‑end. You can claim most costs that directly relate to earning assessable income, such as depreciation, software, travel, memberships and accountant fees.

Home-based claims and methods

Use the fixed rate of 67c per hour for electricity, internet and phone, or the actual cost method with bills, floor plans and hour logs. Be careful: claiming occupancy costs under actual expenses can affect CGT when you sell your home.

Super contributions and timing

Personal super can be deductible if you lodge a Notice of intent and get acknowledgement from your fund. Contributions must be received by 30 June in the relevant year to count.

Avoid non-deductible items

List common business items: tools, software subscriptions, travel and interest on business loans; claim only the portion genuinely used business.
Client entertainment is usually non‑deductible. Private use and business personal items must be apportioned and recorded.
Keep detailed records to support deductions and protect your taxable income position.

For help deciding what you can claim tax or to avoid common errors, speak with Kingsman Accountants before you finalise your return this tax time. They can review claims and ensure compliance for a sole trader.

Cash flow, payments and lodging your tax return

A clear plan for payments, GST and instalments helps you manage cash and meet lodgement dates without panic.

Set aside amounts throughout the year

Move a set amount into a separate savings account each week or month. This builds a buffer for GST, PAYG instalments and your year‑end bill.

Pay super early so contributions clear by 30 June if you want them counted in that year. When unsure about the right amount, ask an accountant to calculate percentages based on your income and expenses.

Key lodgement windows

Note the big dates and mark them in your calendar.

21 July — monthly BAS due.
28 July — quarterly BAS and Super Guarantee Q4 due.
31 October — lodgement deadline if you file your own tax return.

Reconcile records monthly and keep a short cash flow forecast. Use light accounting software to automate invoices, track GST and generate reports so you can claim tax accurately.

“Regular small actions beat last‑minute scrambling at the end of the year.”

Action	Why	When
Set aside funds	Protects cash and meets instalments	Weekly or monthly
Reconcile accounts	Keeps records tidy for lodgement	Monthly
Engage an agent	May extend your lodgement window	Early in the year

If you want personalised advice, contact Kingsman Accountants to check amounts and avoid surprises when you lodge your return.

What’s new and time-sensitive in 2025

Important changes affect instant asset deductions, interest rules and which payments must clear by 30 June. Read these points and act early to protect deductions and cash flow.

$20,000 instant asset write-off: eligibility and the deadline

Claim the $20,000 instant asset write‑off if your business turnover is under $10 million. The allowance applies per asset and the item must be acquired and installed ready to use by 30 June.

Progressive rates and the tax‑free threshold

As a sole trader you pay progressive personal rates on net income. The $18,200 tax‑free threshold still applies, so timing of income and expenses can change what you keep after tax.

Heads-up: non-deductible ATO General Interest Charges

From 1 July the ATO General Interest Charge will no longer be deductible. That raises the real cost of late payments, so pay on schedule or seek alternative finance if needed.

EOFY checklist: what must clear by 30 June

Ensure super contributions are received by the fund by 30 June to claim deductions.
Install assets and document readiness to use before year‑end.
Send outstanding invoices and record expenses so you capture eligible tax deductions.

“Small timing moves can change your taxable outcome — act before key dates close.”

Need help? Contact Kingsman Accountants to confirm eligibility, the per‑asset rule and the best timing for claims.

Conclusion

Finish the year with a short checklist so you keep deductions, records and cash flow in order.

Lock in urgent moves: ensure the $20,000 instant asset write-off is claimed by 30 June and that super contributions reach funds in time to be deductible.

Keep business bank account reconciliations up to date, use simple accounting software and label receipts so your personal return and business schedule are quick to assemble.

If you want certainty about what you can claim and to avoid costly mistakes, contact Kingsman Accountants for professional advice or to book a pre-EOFY review.

Act now and you’ll lodge with confidence, protect income and minimise surprises at tax time.

FAQ

What should I focus on early in the financial year to reduce stress and my tax bill?

Start by organising income and expenses, setting aside a portion of every payment for liabilities, and keeping business and personal accounts separate. Regularly reconcile your bank statements and use accounting software like Xero or MYOB to track deductions. Early planning helps you spot opportunities such as timing deductible purchases and making concessional super contributions before the cut-off.

Do I need an ABN and TFN, and when must I register for GST?

You should have an ABN to trade and quote on invoices, and provide your TFN when lodging returns. Register for GST once your turnover is expected to exceed ,000 in a year. If you hit that threshold, you’ll need to charge GST, lodge BAS and claim GST credits on business purchases.

How do PAYG instalments work and when will the ATO bring me in?

PAYG instalments are periodic pre-payments towards your income tax based on recent taxable income. The ATO may enrol you if your last assessment shows a liability above the threshold. You’ll receive instalment notices with amounts and due dates, or you can vary the instalment if your income changes.

Should I operate as a sole trader or set up a company to reduce tax?

The right structure depends on income level, risk and growth plans. Sole traders have simpler reporting and access to the tax-free threshold, while companies pay company tax rates but have different compliance requirements. Discuss projected taxable income, personal liability and super strategies with an accountant before switching.

Why use a dedicated business bank account?

Separating accounts makes bookkeeping easier, reduces errors on your return and provides clear evidence if the ATO queries deductions. It also helps when reconciling GST, PAYG and business expenses, saving time when lodging BAS and annual returns.

What records do I need to keep and for how long?

Keep invoices, receipts, bank statements and contracts for at least five years from the date you lodge the relevant return. Digital copies are acceptable if they’re legible and backed up. Store records in secure cloud services or accounting software with audit trails.

How do I prove business use for vehicles and phones?

For vehicles, maintain a logbook showing business kilometres and total kilometres over a representative period, usually 12 weeks, then apply that percentage to running costs. For phones, keep itemised bills and a simple usage diary to split business from private calls. Accurate records support claims if reviewed.

Can accounting software save me time when preparing BAS and the annual return?

Yes. Software automates GST tracking, generates BAS reports, captures receipts and integrates with bank feeds. That reduces manual data entry, minimises mistakes and speeds up lodging returns. Choose a package that suits your business size and connect it to your accountant for streamlined lodgements.

What common business expenses can I claim as deductions?

Typical deductible items include office rent, supplies, vehicle running costs (business portion), travel related to work, phone and internet (business share), insurance, business loan interest and depreciation on assets. Only claim the business portion and keep supporting records.

How do home-based business claims work—fixed rate versus actual cost?

You can use the ATO’s fixed-rate method (a cents-per-hour rate for running costs) combined with actual costs for things like mortgage interest and depreciation, or calculate actual expenses based on floor area and time used for business. Choose the method that gives a better result and keep documentation to justify your choice.

When are personal super contributions deductible and what is a notice of intent?

Personal contributions are deductible if you meet eligibility rules and lodge a valid notice of intent with your super fund before claiming on your return. The contributions must be within caps and processed by the fund. Check contribution caps and timing to avoid excess tax.

Which items are not deductible?

Private expenses, personal entertainment, non-business clothing and most fines are non-deductible. You cannot claim full deductions for items with mixed use unless you can substantiate the business proportion with records.

How much should I set aside for tax and GST each time I get paid?

A common rule is to set aside a percentage of gross income—consider saving around 20–30% depending on profit margins and whether you’re registered for GST. If registered, also set aside GST collected (usually 10% of taxable sales) in a separate account to avoid spending it.

What are the key BAS cycles and lodgement windows I should watch?

BAS is usually lodged monthly or quarterly depending on turnover and ATO settings. Quarterly lodgements are common for small businesses; monthly applies to larger operators or when activity justifies it. Annual tax returns follow standard ATO deadlines, and using a registered tax agent can extend those dates.

Am I eligible for the instant asset write-off and what are the rules?

To qualify for the instant write-off, assets must meet the eligibility criteria set by legislation, including being first used or installed by the deadline and being used in the business. The per-asset threshold and expiry date are time-sensitive, so confirm current rules and act before the cut-off to claim immediate deductions.

How do progressive rates and the tax-free threshold affect my taxable income?

Progressive rates mean your marginal rate increases as taxable income rises. Sole traders can access the tax-free threshold on personal income, which reduces tax on the first portion of assessable income. Higher net profit pushes you into higher brackets, so consider income-smoothing strategies and deductible timing.

Are there changes to interest charges or other costs I should know about from 1 July?

There can be adjustments to the ATO’s General Interest Charge or other compliance costs from the new financial year. Keep an eye on official ATO guidance and consult your accountant about how rate changes might affect overdue liabilities and cash-flow planning.

What payments must clear by 30 June to count for the current year?

Payments such as super guarantee, supplier invoices, and salary-related payments generally must be processed and cleared by 30 June to be deductible in that financial year. Electronic funds transfers should be completed and bank statements show the cleared date; check payroll cut-offs to ensure superannuation is received in time.

When should I speak with Kingsman Accountants or another professional?

Contact an accountant well before 30 June to review income projections, timing of deductible purchases, super strategies and structure questions. Early advice can reduce liabilities, avoid last-minute errors and ensure compliance with GST, PAYG and lodgement obligations.