YOUtax: Everything you need to know before lodging your tax return
This article was written by Tax Accountant and YOUtax director, Emma Baxter. Advice is general in nature. As an independent support worker trading under your own ABN as a sole trader business, your tax matters are a bit more complicated than a regular employee. Here are some of the ATO rules you need to know to tackle the tax and compliance obligations when lodging your income tax return. Understanding how much tax you need to pay Unlike employees, where your employer will report your income and pay your tax to the ATO, ABN Sole traders are responsible for reporting their own income and paying their tax to the ATO. In Australia we have what is called a progressive tax rate system. This means that when your income increases, your tax rate may also increase or progress to a higher tax rate. Understanding these tax rate thresholds will help you to plan for how much tax to save, to then pay the ATO. Below are the income thresholds and the rates of tax you will pay. You must also remember









