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

Yes—if you operated a business as a sole trader during the 2025–26 financial year, you generally need to lodge an individual tax return and include your business income or loss.

That applies even if:

• your total income was below the $18,200 tax-free threshold;

• your business made very little money;

• your business made a loss; or

• you do not expect to pay any tax.

The ATO specifically states that a sole trader must lodge a tax return even where their income is below the tax-free threshold.

Your ABN Does Not Have Its Own Tax Return

A common mistake is thinking that an ABN tax return and a personal tax return are two separate things.

For a sole trader, they are not.

You use your individual tax file number and report your business income and expenses inside your individual tax return. Your wages, bank interest, investment income and other personal income are included in that same return.

The ATO identifies this as one of the key tax obligations of operating as a sole trader.

So the real question is not simply:

Do I have an ABN?

It is:

Did I carry on a business as a sole trader during the financial year?

If the answer is yes, lodging is generally required.

What if My ABN Income Was Below $18,200?

The $18,200 tax-free threshold is not a blanket exemption from lodging a tax return.

It is the amount most full-year Australian residents can generally earn before ordinary income tax starts applying. It does not mean a sole trader can ignore their business activity because their profit was below that figure.

Your tax return must still show the business result. That result may be:

• a profit;

• a loss; or

• nil income with business expenses or other activity to report.

This is where people get caught.

They assume “no tax payable” means “no tax return required”.

They are two different questions.

What if I Had an ABN but Earned No Business Income?

This depends on what actually happened during the financial year.

Where you genuinely did not carry on a business and are not otherwise required to lodge an income tax return, you may be able to submit a non-lodgment advice.

However, that decision must be based on your full tax circumstances—not merely the fact that no money came through your ABN.

If the business permanently closed, outstanding lodgment, reporting and payment obligations should be dealt with before the ABN is cancelled.

Leaving an unused ABN sitting around indefinitely does not make the problem disappear. Apparently the tax system has not yet adopted wishful thinking as an accepted compliance method.

Does an ABN Mean I Also Need to Lodge a BAS?

Not necessarily.

An ABN and GST registration are not the same thing.

If you are registered for GST, you will generally need to lodge business activity statements as required. A BAS is separate from your annual income tax return and is used to report obligations such as GST and PAYG.

Some sole traders may therefore need to lodge:

1. an individual tax return containing their business results; and

2. separate business activity statements during the year.

Completing one does not automatically satisfy the other.

Quick ABN Tax Return Checklist

You will generally need to lodge a tax return if you:

• received income using your ABN;

• invoiced customers as a sole trader;

• worked as a contractor, freelancer, consultant or gig worker;

• made a business profit or loss;

• incurred expenses while operating the business; or

• had other income or circumstances requiring an individual tax return.

Do not guess based only on turnover, profit or whether tax was withheld.

Lodge Your ABN Tax Return Online

GoTax makes the sole-trader tax return process straightforward.

Add your business income and expenses, complete your individual tax details, check the declaration and finalise the return. A qualified tax accountant then reviews the return before lodgment.

The GoTax ABN tax return costs $140.

For the complete process, read How to Do an ABN Tax Return in Australia in 2026.

Frequently Asked Questions

Do I lodge a separate tax return for my ABN?

No. A sole trader reports their business income and expenses inside their individual tax return.

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

Generally, yes, if you operated a sole-trader business. The tax-free threshold does not remove the requirement to report the business activity.

What if my ABN made no money?

If you operated the business but earned no income, or made a loss, you will generally still need to lodge.

Where no business activity occurred at all, your complete tax circumstances should be checked before submitting a non-lodgment advice.

Should I cancel an ABN I no longer use?

If the business has permanently stopped, you should complete any outstanding tax obligations and cancel the ABN.

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

Is a BAS the same as an ABN tax return?

No. A BAS reports obligations such as GST and PAYG. A sole trader’s annual business result is included in their individual income tax return.

What does the $18,200 tax-free threshold mean for sole traders?

The $18,200 tax-free threshold is the amount most full-year Australian residents can generally earn before ordinary income tax applies. It does not exempt a sole trader from lodging a tax return or reporting business activity. A sole trader must still lodge even if profit was below this figure.

Do I need to lodge a tax return if my ABN business made a loss?

Yes. If you operated a sole-trader business and it made a loss, you generally still need to lodge your individual tax return and report the business loss. Business loss rules, including non-commercial loss provisions, may then affect whether the loss can be applied against other income.

Do I still need to lodge if I temporarily paused my ABN business?

Temporarily pausing a business does not automatically remove the lodgment obligation. You should check your income tax, GST and BAS obligations based on your full circumstances during the financial year.

What is a non-lodgment advice?

A non-lodgment advice notifies the ATO that you are not required to lodge a tax return for a particular year. It is appropriate only where you genuinely did not carry on a business and are not otherwise required to lodge. It must be based on your full tax circumstances, not merely the fact that no money came through your ABN.

Can a sole trader include both wages and ABN income in the same tax return?

Yes. An individual tax return can include both wages or salary from employment and ABN income from a sole trader business. Your employer may have withheld tax from wages, but ABN clients generally do not withhold tax from invoices — which is why ABN income can create tax payable.

What income goes into a sole trader ABN tax return?

The individual tax return of a sole trader typically includes business income, business expenses, wages or salary if also employed, bank interest, investment income and other personal income. All are reported in the one individual return using the tax file number.

What are the key tax obligations of a sole trader in Australia?

Key sole trader tax obligations include lodging an individual tax return that includes business income and expenses, reporting the business result even if a loss was made, lodging business activity statements if registered for GST, managing PAYG obligations, and keeping records to support income and deduction claims.

How much does an ABN tax return cost at GoTax?

The GoTax ABN tax return costs $140. This covers the individual tax return including the business income and deductions section, reviewed and lodged by a registered tax agent.

Can GoTax help me lodge my sole trader tax return?

Yes. GoTax helps sole traders complete their ABN tax return online. You add your business income and expenses, complete your individual tax details, and a qualified tax accountant reviews the return before lodgement. GoTax is registered with the Tax Practitioners Board (TPB registration 25498770).

About This Article

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

This article explains the Australian income-tax lodgment position for individuals carrying on business as sole traders during the 2025–26 financial year.