Sole Trader

What is a sole trader?

A sole trader is someone who runs their own business as an individual, without any formal structure like a company or trust. If you are a sole trader, you are personally responsible for the management of the business including its profits and losses.

Can a sole trader have employees?

Yes, you can employ people to work in your business. If you have employees, you will need to, among other things, register for PAYG withholding, pay super on their behalf and take out a workers compensation policy covering them.

Does workers' compensation cover me?

No. You can’t take out a workers' compensation insurance policy for yourself. If you want to insure yourself for work injuries, you should consider other types of insurance like personal accident or income protection insurance.

Does my business need a separate TFN (Tax File Number)?

No. As a sole trader, your business income forms part of your personal income for income tax purposes, and you use your individual TFN.

What about super?

You are responsible for paying your own super, and also super on behalf of any eligible employees you have.

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