Sole Trader (Contractor)

A sole trader is an individual running a business. It is the simplest and cheapest business structure.

If you operate your business as a sole trader, you are the only owner and you control and manage the business.

You are legally responsible for all aspects of the business.

  • Do you need to register GST?

If your turnover more than AUD$75,000, You must register for GST

If your turnover less than AUD$75,000, you can choose to register GST OR not register GST

  • Do you need to register PAYG?

You must register for PAYG withholding if you need to withhold an amount from a payment make to your employees

Taxable payments annual report (TPAR)

You may need to lodge a Taxable payments annual report (TPAR) by 28 August each year if you are a:

  • business providing      
    • building and construction services
    • cleaning services for contractor payments from 1 July 2018 (first report due by 28 August 2019)
    • courier services for contractor payments from 1 July 2018 (first report due by 28 August 2019)
    • road freight services for contractor payments from 1 July 2019 (first report due by 28 August 2020)
    • information technology (IT) services for contractor payments from 1 July 2019 (first report due by 28 August 2020)
    • security, investigation or surveillance services for contractor payments from 1 July 2019 (first report due by 28 August 2020)
    • mixed services (a business that provides one or more of the services listed above)
    • government entity.

Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.

We will help you to lodge Taxable payments annual report (TPAR) by review The details of each contractor are generally found on the invoice your business received from them. This includes:

  • Australian business number (ABN), if known
  • name and address
  • gross amount you paid to them for the financial year (including any GST).