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As a sole trader, the Australian Taxation Office (ATO) requires you to lodge an annual tax return. This is because you are considered to be self-employed and running your own business. When you lodge your tax return, you will need to include your business income and expenses. The ATO will use this information to calculate how much tax you need to pay.
You will also need to pay GST if your business turnover is more than $75,000 per year. GST is a 10% tax on most goods and services sold or consumed in Australia. You can register for GST with the ATO if your business turnover is more than $75,000 per year.
You will need to pay income tax on any profit that your business makes. The amount of income tax you pay will depend on how much profit your business makes and what tax bracket you fall into.
Furthermore, you are also responsible for paying superannuation guarantee contributions on behalf of yourself. Superannuation guarantee contributions are payments made by employers into their employees’ superannuation fund. The current superannuation guarantee contribution rate is 9.5%. This means that if you earn $50,000 per year, your employer must pay $4,750 into your superannuation fund each year.
As a sole trader in Australia, you are responsible for paying your own taxes. This includes lodging an annual tax return, GST, income tax, and superannuation guarantee contributions. You can register for GST with the ATO if your business turnover is more than $75,000 per year. Superannuation guarantee contributions are payments made by employers into their employees’ superannuation fund and the current superannuation guarantee contribution rate is 9.5%.