Basic Tax Tips for Sole Trader Personal Trainers in Australia
As a sole trader, managing your tax obligations correctly is crucial – not just to stay compliant, but also to make the most of your allowable deductions. Here are some practical financial tips to help you during tax time.
- Keep Accurate Records Year-Round
Use a spreadsheet, accounting software, or a registered TAX agent to keep track of all income and expenses. The ATO requires sole traders to keep records for five years, including receipts, invoices, and bank statements. Staying organised throughout the year makes tax time much less stressful. - Claim Legitimate Business Expenses
Many work-related costs are tax-deductible, including fitness equipment, uniforms with your business logo, insurance, professional development courses, and a portion of your phone and internet bills (if used for work). Even travel to and from client sessions may be deductible if you travel between jobs, but not if you're commuting from home to your first client. - Separate Personal and Business Finances
Use a dedicated business bank account to avoid confusion between personal and professional spending. This makes it easier to identify eligible deductions and supports accurate record-keeping. - Super Contributions Count
Although not compulsory for sole traders, making personal super contributions can reduce your taxable income and help you save for the future. You may be eligible to claim a deduction for these contributions. - Don’t Forget GST
If your annual turnover exceeds $75,000, you are required to register for GST. Once registered, remember to lodge your BAS regularly and set aside 10% of your income to cover GST payments.
When in doubt, speak with a registered tax agent to ensure you're meeting all ATO requirements and getting the most out of your return.