End-of-financial-year tax guide for sole trader support workers
Tax time is far less painful when your records are tidy all year. This guide is a practical checklist for sole trader support workers in Australia, covering what to gather, what you can usually claim, and what to ask your accountant.
General information only. This is not tax advice. Rules and rates change, and your situation is unique. Always check ato.gov.au or ask a registered tax agent.
The basics
- The Australian financial year runs from 01/07 to 30/06.
- If you lodge your own return, the usual due date is 31/10. A registered tax agent may give you a later date.
- As a sole trader, all your business income is yours to report, and you pay tax on your profit (income minus allowable deductions). Nobody withholds tax for you, so set money aside through the year.
- Keep your records for at least five years.
Step 1: Add up your income
Total everything you were paid for support work in the financial year. Your invoices are the best source, so check them against your bank statements to make sure nothing is missing. Remember that income counts when you receive it or when you invoice it, depending on your accounting method. Ask your accountant which one applies to you.
Step 2: Gather your expenses
You can generally claim costs that were incurred to earn your income and that you can prove. Common ones for support workers include:
| Expense | What to know |
|---|---|
| Car travel between clients | You can claim business kilometres using the ATO's cents-per-kilometre method (up to a yearly limit) or a logbook. Trips between clients are generally claimable, but the daily commute from home to your first job generally is not. Keep a record of dates, destinations and distances. |
| Phone and internet | Claim the work-related portion only, based on a record of your actual use. |
| Uniforms, PPE and first aid supplies | Gloves, protective items and similar things you buy for work. |
| Checks, registrations and training | Work-related fees such as the NDIS Worker Screening Check, first aid and manual handling courses. |
| Insurance | Public liability or professional indemnity for your business. |
| Software and subscriptions | Business apps and tools you use to run your work. |
| Accountant or tax agent fees | The cost of managing your tax affairs is generally claimable. |
If an expense is partly personal, only the work-related share is claimable. You need a receipt, invoice or other record for it, so snap a photo of receipts when you get them rather than hunting at tax time.
Step 3: Check GST
You only have to register for GST once your annual turnover reaches the ATO's threshold, and many disability supports are GST-free anyway. If you are registered, you will also be lodging activity statements through the year. If you are close to the threshold, talk to an accountant sooner rather than later.
Step 4: Think about super and instalments
- Super: sole traders don't have to pay themselves super, but you can make personal contributions and may be able to claim a deduction. Ask your accountant how this applies to you.
- PAYG instalments: if your tax bill was large the year before, the ATO may ask you to pay tax in instalments. Putting a share of every payment aside makes the bill much easier to handle.
Your pre-lodgement checklist
- A total of the income from all invoices, matched to your bank
- A kilometre record for the year (or your logbook)
- Receipts for every expense you plan to claim
- Your ABN, TFN and bank details
- Any activity statements, if you are registered for GST
- Last year's return, for reference
Make it easier next year
The hard part of tax time is rebuilding the year from scattered receipts and memory. Supportal's Complete plan keeps it all in one place as you go: receipt scanning, an expense tracker, a kilometre log and an end-of-year tax summary you can hand to your accountant. Related guide: how to invoice the NDIS.
Quick answers
When is the tax return due for sole traders in Australia?
The usual date for self-lodgers is 31/10 after the financial year ends on 30/06. A registered tax agent may be able to give you a later date.
Can support workers claim kilometres?
Generally yes, for business travel such as trips between clients, using the ATO cents-per-kilometre method or a logbook. The commute from home to your first job generally is not claimable. Keep a record of dates and distances.
How long do I keep tax records?
Generally at least five years. Check the ATO website for the current requirements.
This guide is general information for Australian NDIS support workers and is not legal, financial or tax advice. Prices, rules and thresholds change, so always check the NDIS and ATO websites or speak to a professional for your situation.