ABN Tax Return 2026: Complete GoTax Guide

Quick answer

If you earned income through an ABN in 2026, you generally need to include that income in your tax return.

You may also be able to claim business-related deductions, provided the expenses relate to earning that income, private use is excluded, and you keep proper records.

That is the simple version.

The real-life version usually includes invoices, bank deposits, car use, home office expenses, phone bills, missing receipts, GST confusion, and someone saying:

“I thought because it was ABN income, the tax worked differently.”

It does not work differently enough to ignore it.

GoTax helps ABN workers, sole traders, contractors, freelancers, self-employed workers and rideshare drivers complete tax returns online, with returns checked by registered tax agents before lodgement.

Start your ABN tax return online with GoTax

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Who this guide is for

This guide is for Australians who earned income through an ABN during the 2026 financial year.

That may include:

• sole traders

• contractors

• freelancers

• self-employed workers

• side-hustle operators

• rideshare drivers

• delivery drivers

• small business operators

• consultants

• tradies

• online sellers

• platform workers

• people with both wages and ABN income

If you had an ABN but did not earn income, your situation may be different.

If you earned ABN income, the income generally needs to be dealt with properly in your tax return.

An ABN is not a side pocket where income quietly disappears.

Nice idea.

No.

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What is an ABN tax return?

An ABN tax return is usually an individual tax return that includes business or sole trader income.

For many ABN workers, you do not lodge a separate company return.

Instead, the ABN income and related expenses are included in your individual tax return.

That means your return may include:

• wages

• ABN income

• contractor income

• freelance income

• business income

• rideshare or delivery income

• deductions

• private-use adjustments

• GST awareness

• personal services income issues

• tax withheld from some payments

• no tax withheld from other payments

The return needs to bring all of that together.

Preferably without panic.

GoTax helps with that.

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Do you need to lodge if you have an ABN?

Having an ABN by itself does not automatically mean you had taxable income.

But if you earned income through your ABN, that income generally needs to be included in your tax return.

ABN income may include:

• invoices paid by clients

• cash payments

• bank transfers

• side-hustle income

• contractor payments

• freelance income

• rideshare income

• delivery income

• platform income

• online business income

• sole trader business income

Do not leave it out because the amount was small.

Do not leave it out because it was paid in cash.

Do not leave it out because no tax was withheld.

No tax withheld does not mean no tax payable.

It usually means tax may be calculated later.

That later moment is called your tax return.

Very popular with nobody.

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ABN income you must declare

ABN income can come from many places.

Common examples include:

Income type	Example
Contractor income	Project or labour payments
Freelance income	Design, writing, digital or creative work
Sole trader income	Business sales or service income
Rideshare income	Passenger fares and platform payments
Delivery income	Food or parcel delivery
Online platform income	Marketplaces, service apps or gig platforms
Cash income	Cash paid for services or jobs
Side-hustle income	Work outside normal employment
Consulting income	Advice, reports or client work

If it relates to your ABN or business activity, include it.

Your tax return should match your actual income.

Not your memory.

Memory is useful for birthdays.

Less useful for tax audits.

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Why ABN workers often get tax bills

ABN workers often receive gross income.

That means tax may not have been taken out before payment.

Employees usually have tax withheld from wages during the year.

ABN workers often receive the money first, then tax is calculated when the return is prepared.

That is why an ABN tax return can produce a tax bill.

It does not automatically mean the return is wrong.

It may simply mean tax was not collected earlier.

A good habit is to set aside money for:

• income tax

• GST, if registered

• super contributions

• business expenses

• quiet moments of financial sanity

The invoice money is not all spending money.

That is unpleasant.

Also accurate.

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What deductions can ABN workers claim?

ABN workers may be able to claim expenses connected to earning ABN income.

Common deduction areas include:

• tools

• equipment

• materials

• phone

• internet

• home office

• car expenses

• business software

• subscriptions

• accounting fees

• tax agent fees

• insurance

• advertising

• website costs

• payment platform fees

• professional memberships

• licences

• stationery

• training related to current work

• protective clothing

• bank fees for business accounts

The expense must be business-related.

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

If it is private, leave it out.

If it is made up, definitely leave it out.

That one should not need saying.

It does.

Read the GoTax guide: ABN Deductions: What Can You Claim in 2026?

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Business vs private use

Business/private use is one of the biggest ABN tax issues.

Many expenses are mixed.

Examples include:

Expense	Why it can be mixed
Phone	Business and private calls
Internet	Business and household use
Car	Business trips and private driving
Laptop	Business work and personal use
Home office	Business use and household use
Tools	Paid jobs and private projects
Software	Business and personal use

You generally claim only the business-use portion.

Example:

Expense	Total cost	Business use	Potential claim
Phone	$1,200	40%	$480
Internet	$960	50%	$480
Laptop	$1,800	70%	$1,260 business-use portion
Car costs	$8,000	60%	$4,800

The number should be reasonable.

Not convenient.

There is a difference.

Read: Sole Trader Expenses: Business vs Private Use

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Car expenses with an ABN

ABN workers may be able to claim car expenses where the car is used for genuine business travel.

That may include:

• travelling between jobs

• visiting clients

• carrying tools or equipment

• making deliveries

• driving rideshare

• collecting business supplies

• travelling to quote on work

• moving between business locations

But private travel must be excluded.

Common car claim mistakes include:

• claiming ordinary private travel

• claiming 5,000km automatically

• claiming fuel on top of cents per kilometre

• using an old logbook

• claiming 100% business use without records

• including family use

• having no odometer readings

• claiming home-to-work travel incorrectly

The car does not become deductible just because there is an ABN in the glovebox.

Read: Can I Claim My Car With an ABN?

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Home office claims for ABN workers

ABN workers may be able to claim home office expenses where they work from home to earn business income.

Common home office costs may include the business-use portion of:

• electricity

• internet

• phone

• stationery

• office equipment

• printer costs

• software

• desk and chair

• computer equipment

Be careful with occupancy expenses such as rent, mortgage interest, rates and insurance.

Those claims are more sensitive and may have wider tax consequences, including possible capital gains tax issues.

Working from home does not make the whole home deductible.

A laptop on the kitchen bench does not turn the kitchen into a business premises.

It may turn dinner into a paperwork hazard.

Different issue.

Read: Home Office Claims for ABN Workers

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Contractor tax returns

Contractors need to make sure contractor income is properly included.

A contractor tax return may involve:

• ABN income

• labour hire income

• tax withheld from some payments

• no tax withheld from other payments

• personal services income

• tools and equipment

• car expenses

• home office costs

• phone and internet

• GST awareness

• super considerations

• business/private-use adjustments

One of the biggest contractor issues is personal services income.

PSI can apply where the income is mainly a reward for your personal efforts or skills.

It does not mean anything is wrong.

It does mean the rules need to be checked.

Contractor tax is not always difficult.

But it does dislike lazy assumptions.

Read: Contractor Tax Return 2026: What to Know

Or start here: Contractor Tax Return

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Freelancer and self-employed tax returns

Freelancers and self-employed workers often have similar tax issues.

Common income sources may include:

• client work

• project payments

• digital services

• creative work

• consulting

• online services

• side-hustle income

• platform income

Common deductions may include:

• laptop

• software

• subscriptions

• home office

• phone

• internet

• website costs

• advertising

• payment platform fees

• tax agent fees

• equipment

• training linked to current income

The key is to separate business use from private use.

A freelancer can claim genuine business expenses.

A freelancer cannot claim ordinary private life and call it “brand development”.

That sentence has probably appeared somewhere.

It should not appear in your tax return.

Use:

Freelancer Tax Return
Self-Employed Tax Return

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Rideshare and delivery income

Rideshare and delivery drivers need to be especially careful.

Tax issues may include:

• platform income

• car expenses

• fuel

• servicing

• registration

• insurance

• business/private-use percentage

• logbook records

• GST registration

• BAS

• tolls

• parking

• phone and app costs

• cleaning costs

• records from rideshare or delivery platforms

Rideshare has special GST rules.

Do not assume the normal GST threshold tells the whole story if you provide ride-sourcing or taxi-style passenger services.

This is one area where guessing can become expensive.

Use: Rideshare Tax Return

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GST and ABN tax returns

GST is separate from your income tax return.

Your ABN tax return deals with income tax.

GST is usually handled through BAS if you are registered or required to register.

You may need to think about GST if:

• your turnover reaches the GST registration threshold

• you are close to the threshold

• you charge GST

• you issue tax invoices

• you claim GST credits

• you lodge BAS

• you provide rideshare or taxi-style services

• your business income is growing

For many businesses, GST registration becomes compulsory once turnover reaches the threshold.

For rideshare and taxi-style passenger travel, special rules can apply regardless of turnover.

Income tax and GST are different systems.

Mixing them together is how spreadsheets start whispering threats.

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Records ABN workers should keep

ABN workers should keep records that show:

• income earned

• expenses paid

• business connection

• private use removed

• GST treatment, if relevant

• car calculations

• home office calculations

• invoices issued

• payments received

• receipts kept

• bank transactions explained

• business-use percentages calculated

Useful records include:

• invoices

• receipts

• bank statements

• credit card statements

• platform statements

• app reports

• tax invoices

• logbooks

• odometer readings

• phone bills

• internet bills

• home office diaries

• work calendars

• client records

• job sheets

• software invoices

• insurance records

• BAS records, where relevant

Records should explain the story.

A bank statement alone may not.

“Bunnings $286” might be business supplies.

It might also be a barbecue cover, garden hose and three items from aisle seven that seemed important at the time.

The tax return needs more context.

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Common ABN tax return mistakes

Avoid these:

Mistake	Why it matters
Not declaring all income	ATO data matching may detect income
Thinking ABN income is tax-free	ABN income is still assessable
Claiming private expenses	Private use must be excluded
Guessing deductions	Claims need a reasonable basis
Claiming 5,000km automatically	Business kilometres must be supported
Claiming fuel on top of cents per kilometre	Double dipping
Ignoring home office records	Weakens the claim
Ignoring GST	Can create BAS and registration issues
Ignoring PSI	Can affect contractors and consultants
Using the wrong return type	The return may ask the wrong questions
Missing legitimate deductions	You may underclaim
No receipts or records	Creates ATO risk

The goal is not to claim the most.

The goal is to claim properly.

A bigger refund is only useful if the claim survives daylight.

Read: ABN Tax Return Mistakes That Cost Refunds

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Which GoTax return should you use?

Use this as a guide:

Your situation	GoTax page
You earned general ABN income	ABN Tax Return
You worked as a contractor	Contractor Tax Return
You worked as a freelancer	Freelancer Tax Return
You worked for yourself	Self-Employed Tax Return
You ran a sole trader business	Small Business Tax Return
You drove rideshare or delivery	Rideshare Tax Return

The fixed GoTax price for ABN, contractor, freelancer, self-employed, small business and rideshare tax returns is $140.

No appointment.

No office visit.

No accountant-sized invoice.

Just complete the return online and have it checked before lodgement.

That is the useful bit.

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ABN tax return checklist before you lodge

Before lodging, check:

• Have you included all ABN income?

• Have you included cash payments?

• Have you included platform income?

• Have you included contractor or freelance income?

• Was any tax withheld?

• Have you removed private expenses?

• Have you split mixed-use expenses?

• Are car claims supported?

• Are home office claims supported?

• Are phone and internet percentages reasonable?

• Do you need to consider GST?

• Are PSI issues relevant?

• Do you have receipts?

• Do you have invoices?

• Do you have bank records?

• Are your records consistent?

• Are you using the right GoTax return type?

If you are not sure, sort it before lodging.

It is much easier to fix the return before lodgement than after the ATO asks questions.

Tax questions after lodgement tend to arrive with less charm.

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How GoTax helps ABN workers

GoTax helps ABN workers complete tax returns online.

The system prompts you through relevant income and deduction areas, and your return is checked by registered tax agents before lodgement.

That can help with:

• ABN income

• contractor income

• freelancer income

• self-employed income

• rideshare income

• car claims

• home office claims

• phone and internet

• business/private-use splits

• GST awareness

• PSI awareness

• record issues

• common deduction traps

• choosing the right return type

GoTax does not make unsupported claims safe.

It helps you lodge properly.

That is better.

Much less dramatic.

Much more useful.

Start your ABN tax return online with GoTax

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Frequently asked questions

Do I need to declare ABN income in my tax return?

Yes. If you earned income through an ABN or business activity, it generally needs to be included in your tax return.

Do I lodge a separate tax return for my ABN?

If you are a sole trader, your ABN income is generally included in your individual tax return. Companies, trusts and partnerships can have different requirements.

Can I claim ABN deductions?

You may be able to claim expenses connected to earning ABN income, provided private use is excluded and records are kept.

Can I claim my car with an ABN?

Yes, but only for genuine business use. Private travel and unsupported kilometres should not be claimed.

Can I claim home office expenses with an ABN?

Yes, where you work from home to earn ABN income and keep records to support the claim. Private household use must be removed.

Why did I get a tax bill from ABN income?

Many ABN workers are paid gross, without tax withheld during the year. Tax may become payable when the return is lodged.

Do I need GST with an ABN?

You may need GST registration if your turnover reaches the threshold. Rideshare and taxi-style passenger services have special GST rules.

What records do ABN workers need?

Keep invoices, receipts, bank records, platform statements, logbooks, home office records, phone bills, internet bills and records showing how business/private use was calculated.

Can GoTax help with ABN tax returns?

Yes. GoTax helps ABN workers, contractors, freelancers, self-employed workers, small business operators and rideshare drivers complete tax returns online, with returns checked by registered tax agents before lodgement.

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About the Author

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

GoTax helps Australians complete their 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. Tax law can change and ABN tax treatment depends on your income, business activity, GST position, PSI position, deductions, records and specific facts. If you are unsure, seek advice from a registered tax agent.