July 21, 2026

How to Do an ABN Tax Return in Australia in 2026

Q: Do I need receipts for ABN deductions?

Yes. You should keep receipts, invoices, bank statements, platform records, logbooks and other evidence to support income and expense claims. A bank statement alone may not prove what was purchased or why it was business-related.

To do an ABN tax return in Australia in 2026, you need to include your ABN income, claim eligible business deductions, separate private and business use, keep records, check whether GST or contractor rules apply, and lodge your return properly.

For many sole traders, ABN income is included in your individual tax return.

That means your personal income and business income are dealt with together.

Convenient? Yes.

A little dangerous if you ignore the business section and hope the ATO gets bored? Also yes.

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

Step 1: Work out whether you need to include ABN income

If you earned income through an ABN, you usually need to include it in your tax return.

That can include income from:

sole trader work
contractor jobs
freelance work
rideshare driving
delivery driving
consulting
trade work
cleaning
personal training
online services
platform income
cash jobs
side-hustle work
small business activity

The ATO’s page on income tax returns says sole traders must lodge a tax return even if their income is below the tax-free threshold.

So do not assume small ABN income can be ignored.

Small income is still income.

It just wears a smaller hat.

Step 2: Understand what an ABN tax return actually is

An ABN tax return is usually not a separate return for a sole trader.

For many individuals, it means your personal tax return includes a business section.

That section may include:

business income
business expenses
net profit or loss
personal services income, if relevant
business details
industry details
GST or BAS-related information, where relevant
business losses
deductions connected to the business

The ATO’s 2026 myTax instructions for business and professional items explain that this area is used where business income or losses, personal services income or related business items apply.

Plain English version:

If you earned ABN income as an individual, your tax return needs the business part completed properly.

Skipping it is not a filing strategy.

It is a future letter.

Step 3: Choose the right GoTax page for your situation

ABN workers are not all the same.

Use the page that fits you best:

Your situation	Best GoTax page
You have ABN income and need to lodge	ABN Tax Return
You run a small sole trader business	Small Business Tax Return
You work for yourself	Self-Employed Tax Return
You are a contractor	Contractor Tax Return
You are a freelancer	Freelancer Tax Return
You drive rideshare or delivery	Rideshare Tax Return

The tax return may look similar at a high level.

The details can be very different.

A freelancer’s home office claim, a contractor’s PSI position and a rideshare driver’s car records are not the same animal.

They are just all standing in the ABN paddock.

Step 4: Gather all ABN income

Start with income.

Not deductions.

Income first.

Before lodging, gather:

invoices issued
client payments
bank deposits
cash income
platform statements
rideshare statements
delivery app statements
marketplace income
online sales records
payment processor reports
PayPal or Stripe records
grants or subsidies, if relevant
refunds, rebates or adjustments
income from overseas clients, if relevant

Do not only look at invoices.

Look at what was actually received and what the business records show.

Common ABN income sources include:

Income source	Example
Client invoice income	Contractor or consultant invoices
Platform income	Uber, Airtasker, delivery apps
Freelance income	Design, writing, web work
Cash income	Paid directly by customers
Online income	Marketplace or digital service sales
Trade income	Jobs, materials and labour
Service income	Cleaning, tutoring, personal training

Cash income is still income.

“Cash” is not a tax-free font.

Step 5: Check PAYG wages as well

Many ABN workers also have a normal job.

That means your return may include both:

salary or wages, and
ABN income

Example:

You worked as an employee during the week and did freelance work on weekends.

Your tax return may need to include:

wages
tax withheld
allowances
ABN income
ABN expenses
bank interest
deductions
offsets
HELP or other repayment details, if relevant

Your employer may have withheld tax from wages.

Your ABN clients probably did not withhold tax from your invoices.

That is why ABN income can create tax payable.

The money came in clean.

The tax has not necessarily been dealt with.

A small but rude detail.

Step 6: Add up your business expenses

Next, gather your business expenses.

Common ABN deductions may include:

tools
equipment
materials
software
phone
internet
home office
car expenses
business insurance
advertising
website costs
accounting fees
tax agent fees
subscriptions
platform fees
payment processing fees
stationery
training
protective clothing
business bank fees
repairs
licences
registration costs
contractor payments

The ATO’s business deductions guidance says business expenses generally need to be directly related to earning assessable income.

In normal language:

The expense needs to belong to the business activity.

Not your life.

Not your wish list.

Not that one thing you bought and later tried to justify because it came with a receipt.

Step 7: Separate business and private use

This is where many ABN tax returns go off the rails.

Some expenses are partly business and partly private.

Examples:

Expense	Common issue
Phone	Business calls and private use
Internet	Client work, Netflix, family use
Car	Business trips and private driving
Laptop	Business work and personal use
Home office	Business area and household use
Tools	Business jobs and private projects
Software	Business use and personal use

You can usually only claim the business-related portion.

Example:

You paid $1,500 for phone and internet during the year.

You calculated 40% business use based on a reasonable usage pattern.

Potential business deduction:

$1,500 × 40% = $600

Not $1,500.

Not “roughly all of it”.

Not “I pay for it because of work stress”.

Tax law does not care about stress.

It wants percentages.

Step 8: Keep proper records

Records are not decoration.

They are how your return survives questions.

Useful ABN records include:

invoices
receipts
supplier statements
bank statements
credit card statements
platform reports
app statements
logbooks
odometer readings
phone bills
internet bills
home office calculations
business-use calculations
insurance documents
equipment purchase records
software invoices
tax agent invoices
GST records, if registered

The ATO’s guide to records you need to keep explains that records need to support income and deduction claims.

A bank statement may prove money left your account.

It may not prove what you bought or whether it was business-related.

“Officeworks $214” could be business stationery.

It could also be a chair mat, printer ink and an emotional laminator purchase.

The ATO may want more detail.

Step 9: Check car expenses carefully

Car claims can be valuable for ABN workers.

They can also be wrong in spectacular ways.

Business car use may include:

travel to client sites
travel between jobs
delivery work
rideshare work
mobile service work
travel to buy business supplies
travel between business locations
work-related site visits

Private use may include:

school runs
groceries
holidays
weekend driving
personal errands
non-business travel
family use

For car expenses, you may need to consider:

cents per kilometre method
logbook method
business kilometres
private kilometres
odometer readings
fuel and servicing records
insurance
registration
depreciation
GST issues, if registered

If car use is a serious part of your ABN income, records matter.

Rideshare and delivery drivers should pay extra attention because the car is often the main business tool.

Use the GoTax Rideshare Tax Return page if you drive rideshare or delivery.

Also read: Logbook vs Cents per Kilometre 2026

Step 10: Check home office claims

Many ABN workers work from home.

That does not mean the whole home becomes deductible.

Possible home office-related costs may include:

electricity
internet
phone
office equipment
software
desk
chair
stationery
printer costs
business-use portion of some running costs

Home office claims depend on the facts.

A self-employed consultant working from a dedicated home office is different from a contractor sending one invoice from the kitchen table.

The kitchen table may be emotionally central to the business.

That does not make it an office.

Freelancers can start here: Freelancer Tax Return

Self-employed workers can start here: Self-Employed Tax Return

Step 11: Check GST and BAS

GST is separate from income tax.

You can have an ABN and not be registered for GST.

The ATO’s GST registration guidance says you generally need to register once GST turnover reaches the $75,000 threshold.

Rideshare is different. The ATO’s ride-sourcing guidance explains that the standard $75,000 threshold does not apply to ride-sourcing — GST registration is required from the first dollar of ride-sourcing activity.

That means you need to check your situation before lodging.

Important questions:

Are you registered for GST?
Should you be registered for GST?
Did you lodge BAS?
Did you include GST in your invoices?
Did you claim GST credits?
Have you separated income tax from GST?
Are your figures GST-inclusive or GST-exclusive?
Are you a rideshare driver?

GST mistakes can turn a simple ABN tax return into admin soup.

And not the comforting kind.

Read: Do I Need GST for My ABN?

Step 12: Consider personal services income

Some contractors need to consider personal services income, often called PSI.

The ATO’s personal services income guidance says PSI is income produced mainly from your personal skills or efforts.

This can matter for:

contractors
consultants
IT workers
labour-only workers
professionals
people working mostly for one client
people paid mainly for their own time and skill

PSI does not automatically mean you are doing something wrong.

It means extra rules may apply.

Contractors should be careful if:

most income comes from one client
you are paid for your personal labour or skill
you cannot delegate the work
you use few business assets
you work in a way that looks employee-like
the business is mainly you

A contractor tax return is not always just “income minus expenses”.

Sometimes it is “income minus expenses plus tax law doing interpretive dance”.

Use the GoTax Contractor Tax Return page if this sounds like you.

Step 13: Check business losses

If your ABN activity made a loss, do not assume the loss can always reduce your other income immediately.

Business losses can be affected by rules such as:

whether you are actually carrying on a business
whether the loss is from a commercial activity
non-commercial loss rules
whether income tests are met
whether the activity is more like a hobby
whether records support the income and expenses

This is a common trap for side businesses.

A new business may have startup costs.

A hobby may have enthusiasm.

Tax law wants to know which one it is.

Enthusiasm alone is not deductible.

Tragic, but useful to know.

Step 14: Review tax put-aside and PAYG instalments

ABN workers often receive income without tax withheld.

That means you may need to put tax aside yourself.

You may also be placed into PAYG instalments after a tax return shows business income.

Common ABN tax bill causes include:

no tax withheld from ABN income
no tax saved during the year
GST confusion
not recording income properly
missing deductions
claiming private expenses incorrectly
HELP or Medicare adjustments
income higher than expected
prior year debts

If you receive $10,000 of ABN income, that does not mean you have $10,000 to spend.

Some of it may belong to future tax.

Future tax is quiet during the year.

Then suddenly very chatty.

Read: How Much Tax Should I Put Aside for ABN Income?

Step 15: Avoid common ABN tax mistakes

Before lodging, check for these mistakes:

Mistake	Why it matters
Leaving out ABN income	The ATO may data match it
Forgetting cash income	Cash is still income
Claiming private expenses	Private costs are not business deductions
Claiming 100% of mixed-use costs	Business use must be separated
No receipts	Weakens deductions
No car records	High-risk claim area
Ignoring GST	Can create BAS problems
Ignoring PSI	Can affect contractor deductions
Mixing personal and business accounts	Makes records messy
Copying last year	Business facts change
Not putting tax aside	Can create a tax bill

The biggest mistake is treating ABN tax like employee tax.

It is not the same.

Employees often have tax withheld before they are paid.

ABN workers often get the money first and the tax problem later.

A nasty little delayed-release capsule.

Step 16: Lodge online through GoTax

GoTax helps you complete your ABN tax return online.

You work through the return.
You include income.
You enter deductions.
You answer plain-English questions.
You include ABN and business details.
Your return is checked by registered tax agents before lodgement.

That helps reduce common problems like:

missed ABN income
missed business deductions
incorrect private-use claims
weak car claims
home office mistakes
contractor confusion
freelancer income issues
rideshare record problems
GST and business record issues

The aim is not to lodge the most aggressive return possible.

The aim is to lodge the correct return.

Correct is underrated.

Until the ATO asks questions.

Start your ABN tax return online with GoTax

ABN tax return checklist

Before lodging your 2026 ABN tax return, check:

all ABN income included
cash income included
platform income included
invoices reviewed
bank deposits checked
employee wages also included, if relevant
business expenses recorded
private expenses removed
mixed-use expenses apportioned
car records checked
home office calculations prepared
phone and internet use calculated
equipment purchases reviewed
GST position checked
BAS records checked, if registered
PSI considered, if relevant
business loss rules considered, if relevant
tax agent fees included where relevant
bank details correct
return reviewed before lodgement

That checklist is not exciting.

Good.

Exciting tax returns are often the ones that come back later.

Frequently asked questions

How do I do an ABN tax return in 2026?

Gather your ABN income, business expenses, records, car details, home office calculations and GST information if relevant. Then include the business income and deductions in your tax return and lodge properly.

Is an ABN tax return separate from my individual tax return?

For many sole traders, ABN income is included in the individual tax return. Your personal income and business income are dealt with together.

Do I need to lodge if I only made a small amount from my ABN?

If you operated as a sole trader, the ATO says you must lodge a tax return even if income is below the tax-free threshold. You should not ignore small ABN income.

What ABN income do I need to declare?

You may need to declare invoices, cash jobs, contractor income, freelance income, rideshare income, delivery income, platform payments, online income and other business income.

What expenses can I claim with an ABN?

You may be able to claim expenses directly related to earning business income, such as tools, equipment, software, phone, internet, car expenses, home office costs, insurance, advertising and tax agent fees.

Can I claim private expenses if I have an ABN?

No. Having an ABN does not make private expenses deductible. If an expense is partly business and partly private, only the business portion should be claimed.

Do I need receipts for ABN deductions?

Yes, you should keep receipts, invoices, bank statements, platform records, logbooks and other evidence to support income and expense claims.

Do I need GST if I have an ABN?

Not always. GST registration is separate from having an ABN. Many businesses need to register when GST turnover reaches $75,000, but ride-sourcing has special GST rules.

Can GoTax help with ABN tax returns?

Yes. 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.

What is the easiest way to lodge an ABN tax return?

Use GoTax online, gather your income and deduction records first, complete the ABN/business sections carefully, and have the return checked before lodgement.

How do I separate business and private use for ABN expenses?

For mixed-use expenses such as phone, internet, car or laptop, calculate the percentage used for business. Only claim that percentage. For example, if you pay $1,500 for phone and internet and 40% is business use, you can claim $600 — not $1,500.

What car expenses can I claim with an ABN?

ABN workers may claim business-related car use including travel to client sites, delivery work, rideshare work and travel between business locations. Private travel, school runs, groceries and weekend driving are not deductible. Records including logbooks or business kilometre records are needed.

What should I do if my ABN activity made a loss?

Business losses may be affected by non-commercial loss rules, which can prevent the loss from immediately reducing other income. The ATO considers whether you are genuinely carrying on a business, whether the activity is commercial, and whether income tests are met. A registered tax agent can help assess your position.

What is PAYG instalment and how does it affect ABN workers?

PAYG instalments are prepayments of income tax collected during the year to avoid a large tax bill at lodgement. ABN workers are often entered into the PAYG instalment system after their first tax return shows business income. If you receive ABN income without tax withheld, it is important to put money aside during the year.

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.

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, deductions, records, GST position and specific facts. If you are unsure, seek advice from a registered tax agent.

ARTICLE BODY ENDS HERE

Tax Blogs