Preparing and Submitting your Sole Trader Income Tax Return via MyGov

This article explains the steps required to prepare and submit your personal (sole Trader) income tax return via the myGov website

Overview

To complete your Income Tax Return via the myGov website follow the instructions below, using the figures entered into you Income and Expenses spreadsheet through out the year.

Just prior to submitting your return you will be able to calculate your likely income tax bill.

Sign into the myGov website

1. In your browser go to the myGov website
2. In the Linked Services section click on the Australian Tax Office option
3. Once the ATO portal opens identify the income tax return that you need to complete in the For Action section
4. Click on the Prepare link
5. A pre-populated income tax return form will appear. Work your way through each of the following sections:

Contact Details

1. Verify that all contact details are correct and update, if required.
2. Click Next

Financial Institution Details

1. Check that your bank account details are correct
2. Click Next

Personalise Return

The form will be prepopulated using information from your previous income tax return and other information that the ATO already knows about you. Please double check the prefilled information that the ATO has already entered on your behalf.

1. Check each section , paying particular attention to those sections that are already completed for you.
2. If you have received a new form of income during the last financial year, ensure that this section is selected.
   1. You received salary, wages or other income on an income statement/payment summary, Australian Government payments, or First home super saver (FHSS) scheme payment
      1. Did you receive wages from an employer? If so, select this item
   2. You had income from Australian superannuation or annuity funds
      1. Did you receive income from your superannuation fund? Normally this would only occur if you are retired. If so, select this item
   3. You had Australian interest, or other Australian income or losses from investments or property
      1. Most people will have received some interest on their bank accounts, so this section is likely to be preselected for you. If not, and you did receive rent, interest or income (or losses) from other investments, select the relevant items.
   4. You had managed fund or trust distributions (including where distribution has capital gains and foreign income)
      1. Did you receive income from a managed fund or a trust? If so, select this item
   5. You were a sole trader or had business income or losses or partnership distributions
      1. Ensure that this section is selected.
   6. You had foreign income
      1. If you received any foreign income select this item
   7. You had other income not listed above (including employee share schemes)
      1. If you received any other income that is not listed above, select this item.
   8. You had deductions you want to claim
      1. You most likely have expenses (deductions) that you wish to claim., If so, select this item.
   9. You had tax losses of earlier income years
      1. If you have made a loss and did not have to pay tax in a previous years, select this item.
   10. You are claiming tax offsets or adjustments
       1. If you believe that your are eligible for any tax offsets or adjustments, it is advisable to seek advice from a Tax Agent and not submit your own income tax return.
   11. Note related to the sharing economy or cash income

 

Prepare Return

1. Interest

   1. It is likely that any interest that you have been paid during the financial year has already been included in your income tax return. If there is any interest payments that are missing click on Add/Edit and add the details of the missing payments.

2. Dividends

   1. It is likely that any dividends that you have been paid during the financial year have already been included in your income tax return. If there are any dividend payments that are missing click on Add/Edit and add the details of the missing payments.

3. Managed fund and trust distributions

   1. If there are any managed fund and/or trust distributions that you have received during the financial year click on Add/Edit and add the details of the missing payments.

4. Business/sole Trader and partnership income

   1. As you will have received income from your business you need to update this section. Click on Add/Edit and complete the following, using the information in your Income and Expenses spreadsheet
      1. Did you receive any personal services income?
         1. As a sole Trader you most likely did receive personal services income. If so, Click Yes. See here for more information about what personal services income is.
      2. Did any activity satisfy the results test?
         1. Answer Yes to this question
      3. Main Business or professional activity
         1. Click on the drop down and select the business type that best describes what your business does.
      4. Number of Business activities?
         1. How many types of Business activities do you undertake via your business. For most people this will just be one type of activity (for example, plumbing, or Health Care Services)
      5. Status of business
         1. Select Continuing Business
      6. Main business name
         1. If you do not have a registered business name, just enter your name
      7. Australian Business Number (ABN)
         1. Enter your ABN
      8. Main business address
         1. Enter your business address. If you do not have a business address, enter your home address
      9. Click Save
      10. If you are a primary producer (farmer) you should contact a registered Tax Agent
      11. Scroll down to the Net non-primary production section and click the drop down
      12. Assessable government industry payments
          1. This is most likely $0. If you do receive government industry payments you should contact a registered Tax Agent rather than submitting your own income tax return
      13. Other business income – manually calculated
          1. From the income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell D20 to determine your total business income
             3. Enter this figure
      14. Opening stock
          1. If you have stock you should contact a Registered Tax Agent to complete your income tax return
          2. If you do not have stock in your business skip this section
      15. Purchases and other costs
          1. If you have stock you should contact a Registered Tax Agent to complete your income tax return
          2. If you do not have stock in your business skip this section
      16. Closing stock
          1. If you have stock you should contact a Registered Tax Agent to complete your income tax return
          2. If you do not have stock in your business skip this section
      17. Foreign resident withholding expenses (excluding capital gains)
          1. If you have are a foreign resident you should contact a Registered Tax Agent to complete your income tax return
      18. Contractor, subcontractor and commission expenses
          1. If you have contractors or pay commission to sales people return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell E20 to determine the total amount paid to contractors
             3. Enter this figure
          2. If you do not have contractors ignore this section
      19. Superannuation expenses
          1. If you have paid superannuation during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell F20 to determine the total amount paid to contractors
             3. Enter this figure
          2. If you do not have contractors ignore this section
      20. Bad Debts
          1. If you have paid had bad debts during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell G20 to determine the total amount of bad debts
             3. Enter this figure
          2. If you do not have contractors ignore this section
      21. Lease Expenses
          1. If you have paid had lease expenses during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell H20 to determine the total amount of lease expenses
             3. Enter this figure
          2. If you do not have contractors ignore this section
      22. Rent expenses
          1. If you have paid rent during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell I20 to determine the total amount of rent paid
             3. Enter this figure
          2. If you do not have contractors ignore this section
      23. Interest expenses within Australia
          1. If you have paid interest to an Australian entity during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell J20 to determine the total amount of Australian interest paid
             3. Enter this figure
          2. If you do not have contractors ignore this section
      24. Interest expenses overseas
          1. If you have paid interest to an overseas entity during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell K20 to determine the total amount of Overseas interest paid
             3. Enter this figure
          2. If you do not have contractors ignore this section
      25. Depreciation expenses
          1. If you have paid interest to an overseas entity during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell L20 to determine the total amount of Overseas interest paid
             3. Enter this figure
          2. If you do not have contractors ignore this section
      26. Depreciation expenses – manually calculated
          1. If you have depreciation to calculate you should contact a Registered Tax Agent to complete your income tax return
          2. If you do NOT have depreciation to calculate in your business skip this section
      27. Motor vehicle expenses
          1. If you have incurred motor vehicle expenses during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell M20 to determine the total amount of motor vehicle expenses
             3. Enter this figure
             4. From the Motor Vehicle Expenses type dropdown select the method that you have used to calculate your motor vehicle expenses. This is most likely the cents per km option.
      28. Repairs and Maintenance expenses
          1. If you have paid Repairs and Maintenance expenses during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell N20 to determine the total amount of repairs and maintenance paid
             3. Enter this figure
      29. All other expenses – manually calculated
          
          1. If you have paid Other expenses  during the year return to the  income and expenses spreadsheet, 
             1. Click on the Profit and Loss tab
             2. Scroll down to cell O20 to determine the total amount of other expenses paid
             3. Enter this figure
      30. Scroll down to the Net non-primary production income or loss from business this year section and check that the figure provided matches the Total Profit figure on your income and expenses spreadsheet
          1. If there is a difference, it is likely that you have missed a section on the income tax return form. Double check all figures against the income and expenses spreadsheet
          2. Make a note of this figure.
      31. Scroll down to the Net non-primary production income or loss from a business of investing section. Enter the Net non-primary production income or loss from business this year figure (see above)
      32. Enter $0 in the Net non-primary production income or loss from a rental property business section
      33. Enter $0 in the Remaining net non-primary production income or loss from business section
      34. Click Save
      35. Scroll to the bottom of the screen and client Save and continue
5. Other income
   1. If you have any other income that has not been included in the tax return click Add/edit to complete this section
6. Deductions
   1. If you have any other deductions (expenses) that has not been included in the tax return click Add/edit to complete this section
7. Offsets
   1. You are most likely eligible for a $1,000 small business income tax offset
   2. Click Add/edit
   3. Enter the Net non-primary production income or loss from business this year figure in the Net small business income (from sole trading activities) field
   4. Click Save and continue
8. Income Tests
   1. Click Add/edit
      1. Tax-free government pensions or benefits
         1. If you receive any tax-free government pensions of benefits enter the amount you received during the financial year.
         2. Note that this does not include Jobseeker, aged pension or other Centrelink payments
      2. Target foreign income
         1. If you received any foreign income during the financial year enter this amount here
      3. Child support you paid 
         1. If you paid child support payments during the year, enter the total amount paid during the financial year here
      4. Number of dependent children
         1. Enter the number of dependant children you have
9. Medicare and private health insurance