Do I Need to Lodge a Tax Return if I Have an ABN?

Yes, in most cases you need to lodge a tax return if you have an ABN and you carried on a business as a sole trader during the financial year.

That can apply even if:

• you earned less than the tax-free threshold

• your ABN income was small

• your business made a loss

• you only did side hustle work

• you worked as a contractor

• you invoiced clients

• you had business expenses but little income

• you do not expect to pay tax

The key question is not simply:

“Do I have an ABN?”

The better question is:

“Did I carry on a business or earn income through my ABN?”

If yes, your ABN income and expenses generally need to be reported in your individual tax return.

GoTax helps ABN holders lodge online for a fixed $140 fee, including the business schedule and registered tax agent review before lodgement.

You can start your ABN tax return online with GoTax.

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Your ABN does not lodge its own tax return

This catches people all the time.

If you are a sole trader, your ABN does not lodge a separate tax return by itself.

Your ABN business result goes inside your individual tax return.

That means your one individual tax return may include:

• salary and wages

• ABN income

• business expenses

• bank interest

• investment income

• rental income, if relevant

• other personal income

• deductions and offsets

So if you are a sole trader, there is not usually a separate “ABN tax return” sitting somewhere by itself.

There is your individual tax return.

It just includes a business section.

Less mysterious.

Still annoying.

But manageable.

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What counts as ABN income?

ABN income can include money you earned from working for yourself or invoicing customers.

Common examples include:

• contractor income

• freelance income

• consulting fees

• trade income

• labouring income

• rideshare or delivery income

• NDIS provider income

• online business income

• side hustle income

• personal training income

• creative or digital work

• invoices paid by clients

• cash payments for business work

If you issued invoices, quoted your ABN, or were paid as a contractor rather than an employee, that income usually needs to be considered in the business section of your return.

Calling it “just a small job” does not make it disappear.

Tax law has heard that sentence before.

Many times.

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What if my ABN income was below $18,200?

The $18,200 tax-free threshold is often misunderstood.

It does not mean you can ignore ABN business activity.

If you carried on a business as a sole trader, you may still need to lodge a tax return and report the business result, even if your total income was below the tax-free threshold.

The tax-free threshold is about when income tax may start applying for many Australian residents.

It is not a free pass to skip business reporting.

That means you may need to report:

• a business profit

• a business loss

• nil income with business activity

• expenses connected to your business

• other income earned during the year

“No tax payable” and “no tax return required” are not the same thing.

They sound similar.

They are not friends.

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What if my ABN made a loss?

If your ABN business made a loss, you generally still report it.

A business loss can happen where your business expenses are more than your business income.

For example:

Item	Amount
ABN income	$4,000
Business expenses	$6,000
Business result	$2,000 loss

That loss still needs to be dealt with properly.

In some cases, business loss rules may affect whether the loss can be used against other income straight away or carried forward.

That depends on the facts.

The important point is this:

A loss does not mean you ignore the business.

It means the business result needs to be reported properly.

Losses do not lodge themselves.

Sadly.

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What if I had an ABN but earned no income?

This depends on what actually happened.

Situation	Likely treatment
You operated the business but earned no income	You may still need to lodge and report the business activity
You operated and made a loss	You generally need to lodge and report the loss
You temporarily paused the business	Check income tax, GST and BAS obligations
You never started the business	Check whether a non-lodgment advice may be appropriate
You permanently stopped trading	Finalise obligations and consider cancelling the ABN

The important detail is whether the business was actually being carried on.

If you had no income because you were still trying to get work, buying tools, advertising, setting up systems or serving clients without being paid yet, there may still be business activity to report.

If the ABN was completely unused and you were not otherwise required to lodge, the answer may be different.

But do not decide based only on “no money came in”.

Tax asks more questions than that.

Naturally.

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What if I only did one ABN job?

One ABN job may still need to be declared.

If you invoiced someone or were paid under your ABN, that income does not become invisible because it was small, casual or short-term.

It may need to be included even if:

• the job was a one-off

• it was a weekend job

• it was a trial contract

• it was a side hustle

• it was paid in cash

• it was paid by bank transfer

• no tax was withheld

The fact that no tax was withheld is exactly why the tax return matters.

Employees usually have tax taken out through payroll.

ABN workers often do not.

That can create tax payable if nothing has been set aside.

The ATO is not sentimental about “but I already spent it”.

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ABN income is different from wages

Wages and ABN income are treated differently.

With wages:

• your employer reports income

• tax is usually withheld

• super may be paid by the employer

• income usually appears in ATO prefill

With ABN income:

• you invoice clients

• tax may not be withheld

• you usually manage your own tax

• you claim business expenses

• you need business records

• income may not appear automatically like wages

That means ABN income can surprise people at tax time.

If you earned $20,000 through an ABN and did not set aside tax, the tax return may show tax payable.

This is not the ATO being dramatic.

It is just the tax catching up.

Tax always catches up.

It has comfortable shoes.

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What expenses can ABN holders claim?

ABN holders may be able to claim business expenses that relate to earning business income.

Common examples include:

• vehicle expenses

• tools and equipment

• phone and internet

• software subscriptions

• protective clothing

• insurance

• professional fees

• business bank fees

• advertising

• home office expenses

• training connected to the business

• tax agent fees

• bookkeeping costs

The expense must be connected to the business.

If it is partly private, only the business portion should be claimed.

A receipt alone does not make something deductible.

It proves you spent money.

It does not prove the tax system cares.

That second part is where the rules come in.

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Do I need to lodge a BAS as well?

Maybe.

A BAS is not the same as an annual tax return.

You may need to lodge BAS if you are registered for GST or have other business reporting obligations.

For many ABN holders, the big GST threshold is $75,000 turnover.

If your GST turnover reaches the threshold, GST registration may be required.

There is also a major rideshare and taxi exception: rideshare and taxi drivers generally need GST registration from the first dollar of that work.

That means some ABN holders may need:

• an individual tax return

• a business schedule

• BAS lodgements

• GST reporting

• PAYG instalments

Not everyone needs BAS.

But if you are GST-registered, ignoring BAS is not a strategy.

It is just a delayed argument with the ATO.

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Should I cancel an ABN I no longer use?

If you are no longer running a business, you should consider whether the ABN should be cancelled.

Before cancelling, make sure you have dealt with:

• outstanding tax returns

• BAS obligations

• GST obligations

• PAYG obligations

• income reporting

• business debts

• final records

If the business is only paused, cancellation may not be right.

If it has permanently stopped, leaving an unused ABN open can create confusion.

An old ABN sitting around quietly is not always harmless.

It can still make the ATO ask, “So, what happened here?”

And that is rarely the start of a fun conversation.

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What records do ABN holders need?

ABN holders should keep clear records of business income and expenses.

Useful records include:

• invoices issued

• receipts

• bank statements

• payment records

• expense records

• vehicle records

• home office records

• software invoices

• equipment purchase records

• insurance documents

• business loan records

• GST and BAS records, if registered

• records showing private use has been excluded

The basic rule is simple:

If you want to claim it, keep the record.

A bank deposit may show money came in.

A receipt may show money went out.

But your records should also show what the amount related to and whether it was business or private.

“Trust me, it was for work” is not a record.

It is a sentence.

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Do I need an ABN tax return if I also had wages?

Yes, if you also earned ABN income or carried on a business.

Many people have both:

• wages from employment

• ABN income from contracting or side work

Both can go into the one individual tax return.

For example:

Income type	Where it goes
Wages from employer	Salary and wages section
ABN contractor income	Business income section
Business expenses	Business deductions section
Bank interest	Interest section

Do not lodge wages and forget the ABN income.

The tax return needs the full picture.

Tax returns do not appreciate selective storytelling.

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Contractor, freelancer, small business or self-employed?

Different people use different words.

ABN income may come from being a:

• contractor

• freelancer

• sole trader

• self-employed worker

• small business owner

• gig worker

• rideshare driver

• delivery driver

• consultant

• NDIS provider

• trade subcontractor

The label matters less than what actually happened.

Did you invoice clients?

Did you work for yourself?

Did you quote an ABN?

Did you carry on business activity?

Did you earn business income?

If yes, the income needs proper treatment.

If you mainly invoice clients under your ABN, the GoTax contractor tax return page may help.

If you run a broader business with stock, assets, GST or employees, the GoTax small business tax return page may be the better fit.

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How GoTax helps ABN holders

GoTax prepares ABN tax returns online for a fixed $140 fee.

That includes the individual tax return and the business schedule.

GoTax helps with:

• ABN income

• business expenses

• contractor income

• freelance income

• sole trader income

• GST and BAS questions

• vehicle expenses

• home office expenses

• tools and equipment

• phone and internet

• business deductions

• registered tax agent review before lodgement

You can check current return options on the GoTax pricing page.

The goal is simple:

Get the ABN income reported properly, claim legitimate deductions, and lodge the return without turning it into a tax horror movie.

You can start your ABN tax return online with GoTax.

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Quick ABN lodgement checklist

You may need to lodge a tax return if you:

• had an active ABN and carried on business

• invoiced clients

• received contractor income

• received freelance income

• earned side hustle income

• made a business profit

• made a business loss

• had business expenses

• worked through platforms or marketplaces

• earned income without tax withheld

• were registered for GST

• had BAS obligations

• also had wages or other income

Do not decide based only on whether you made a profit.

A business loss can still need reporting.

A small amount can still matter.

A quiet ABN can still need attention.

Tax is needy like that.

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Ready to lodge your ABN tax return?

If you had an ABN and carried on business during the 2026 financial year, your ABN income and expenses generally need to be included in your individual tax return.

GoTax helps ABN holders lodge online for a fixed $140 fee, including the business schedule and registered tax agent review before lodgement.

Start your ABN tax return online with GoTax

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Frequently asked questions

Do I need to lodge a tax return if I have an ABN?

In most cases, yes, if you carried on a business as a sole trader or earned income through your ABN.

The ABN itself is not the whole test. The key issue is whether you had business activity, business income, business expenses, or other circumstances that mean a return is required.

Does my ABN lodge a separate tax return?

No. A sole trader ABN does not usually lodge a separate tax return.

Your ABN income and expenses are included inside your individual tax return. The business result is reported in the business section of that return.

Do I need to lodge if my ABN income was under $18,200?

Generally yes, if you carried on a business as a sole trader.

The tax-free threshold does not automatically remove the need to report business activity. You may still need to lodge and show the business income, expenses, profit or loss.

What if my ABN business made a loss?

If your ABN business made a loss, the loss generally still needs to be reported.

Business loss rules may affect whether the loss can be used straight away or carried forward. That depends on your circumstances and the nature of the business activity.

What if I had an ABN but earned no income?

It depends on whether you carried on a business during the year.

If you operated the business, had expenses, advertised, worked toward earning income or temporarily paused trading, you may still need to lodge. If there was no business activity at all, your full lodgement position should be checked.

Is a non-lodgment advice enough if I had an ABN?

Only sometimes.

A non-lodgment advice may be appropriate if you genuinely do not need to lodge a tax return. It should not be used simply because ABN income was low or because no money came in.

Do I need to declare cash jobs through my ABN?

Yes. Cash income from business work still needs to be declared.

The payment method does not decide whether income is taxable. Cash, bank transfer, platform payment and invoice payment can all be business income.

Do I need to declare ABN income if no tax was withheld?

Yes. In fact, that is one of the reasons ABN income needs careful treatment.

Unlike wages, tax may not be withheld from ABN income during the year. Your tax return works out the final tax position after income and deductions are included.

Can I claim expenses against ABN income?

Yes, if the expenses relate to earning your business income and you have records.

Common claims may include vehicle expenses, tools, phone, internet, software, insurance, home office expenses and tax agent fees. Private expenses should not be claimed.

Do I need to lodge a BAS if I have an ABN?

Not automatically.

A BAS is generally required if you are registered for GST or have other reporting obligations. Your annual income tax return and BAS are separate obligations.

When do ABN holders need to register for GST?

Many businesses need to register for GST once GST turnover reaches $75,000.

Rideshare and taxi drivers have a different rule and generally need GST registration from the first dollar of that work.

Should I cancel an unused ABN?

If the business has permanently stopped, you should consider cancelling the ABN after dealing with outstanding tax, GST, BAS or payment obligations.

If the business is only paused, cancellation may not be appropriate. The decision depends on what is actually happening with the business.

What records should ABN holders keep?

ABN holders should keep invoices, receipts, bank records, vehicle records, home office records, software invoices, equipment records and GST/BAS records if registered.

Records should show both the amount and the business connection. A payment record alone may not explain why the expense was deductible.

How much does GoTax charge for an ABN tax return?

GoTax charges a fixed $140 fee for an ABN tax return.

That includes the individual tax return and business schedule, with registered tax agent review before lodgement.

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About the Author

Written by Mark Walmsley, Chartered Accountant and Registered Tax Agent.

GoTax helps Australians, ABN holders, sole traders, contractors, freelancers and small business owners complete tax returns online, with returns checked by registered tax agents before lodgement.

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General Information Disclaimer

This article provides general information only and does not take into account your personal circumstances. ABN tax treatment depends on whether you carried on a business, your income, expenses, GST registration, BAS obligations, records, business losses and full tax position. Tax rules and ATO processes can change. If you are unsure, seek advice from a registered tax agent.