Self-Employed & the Small Business Schedule: The Ultimate Guide

If you’re a sole trader, freelancer, tradie, or running your own side hustle, this is your one-stop shop for nailing your tax return—especially the Small Business Schedule (SBS). No jargon, no waffle, just what you need to know.

What is the Small Business Schedule?

The SBS is a section of your individual tax return. It’s where you:

• Report all your business income

• Claim your business expenses

• Access small business tax concessions

If you’re running a business—even solo—you’ll need to fill this out.

Record Keeping: Your Secret Weapon

Good records mean less stress, bigger refunds, and no dramas if the ATO comes knocking.

Tip: Use eCashbooks—the best, easiest cashbook system built for small business people just like you. Here’s why it’s a game-changer:

eCashbooks Features:

• Easy Invoicing: Create, send, and track professional invoices in seconds.

• BAS & GST Sorted: Automatically tracks GST and prepares your BAS—no more spreadsheet headaches.

• Mobile Friendly: Use it on your phone, tablet, or computer—manage your business anywhere, anytime.

• Bank Reconciliation: Quickly match your bank transactions to your records, so nothing slips through the cracks.

• Expense Tracking: Snap a photo of your receipt and log it on the spot.

• Customer & Supplier Management: Keep all your contacts and transaction history in one place.

• Reports at Your Fingertips: Instantly see your profit & loss, transactions, and more—perfect for tax time or business planning.

• Multi-User Access: Share access with your bookkeeper or accountant, so everyone’s on the same page.

• Secure & Cloud-Based: Your data’s safe, backed up, and accessible 24/7.

What to keep (paper or digital):

• Invoices and receipts

• Bank statements

• Details of all business income and expenses

• Logbooks for vehicles (if you claim car expenses)

• Records of any assets you buy or sell

Hang onto everything for at least 5 years.

The Dos

• Do keep good records: Save every invoice, receipt, and bank statement.

• Do declare all your business income: Cash jobs, online sales, side hustles—if you earned it, it goes in.

• Do claim genuine business expenses: Tools, equipment, work travel, home office costs, a portion of your phone/internet—if it’s for work, it’s likely claimable.

• Do check for small business tax concessions: Things like instant asset write-off, simplified depreciation, and GST concessions can save you money.

• Do use Gotax: The Small Business Schedule is built into Gotax Online, a simple three step process.

The Don’ts

• Don’t mix business and personal expenses: Only claim what’s genuinely for your business. That new TV for the lounge? Not a business expense.

• Don’t forget to include all income: The ATO gets data from banks, platforms, and payment apps. Leave something out and you’re asking for trouble.

• Don’t guess your deductions: If you can’t prove it, don’t claim it. No receipt, no deduction.

• Don’t ignore super: If you pay yourself super, you might be able to claim a deduction. If you have employees, paying their super is a must.

• Don’t leave it to the last minute: Rushing leads to mistakes, and mistakes can mean audits or fines.

Gotax Online FAQs: Everything Self-Employed Ask

Q: Do I need an ABN to be self-employed?
A: Yes, if you’re running a business or earning money as a sole trader, you need an Australian Business Number (ABN). It’s free to get.

Q: What if I have both a job and a side business?
A: You need to declare both your salary/wages and your business income in your tax return. It's only the one return.  The ATO wants the full picture.

Q: Can I claim my laptop or phone?
A: If you use them for work, yes—but only the work-related portion. If it’s 50% business, claim 50%. Keep records to back it up. Use the deduction grabber app.

Q: How do I pay tax if I’m self-employed?
A: You pay tax when you lodge your return. If you earn enough, the ATO might put you on Pay As You Go (PAYG) instalments for next year.

Q: What about superannuation?
A: You’re not required to pay yourself super, but it’s a smart move for your future. If you do, you can usually claim it as a deduction. The current deduction rate is $30,000 per year.

Q: Can I claim meals or coffee meetings?
A: Only if it’s directly related to earning your income (like meeting a client in your office). Everyday lunches and coffees? Sorry, not deductible.

Q: What if I work from different locations?
A: You can claim travel between work sites, but not from home to your first job of the day (unless home is your base of business).

Q: Do I need to keep a logbook for my car?
A: If you want to claim actual expenses (fuel, rego, servicing), yes—a logbook is a must. Otherwise, you can use the cents-per-kilometre method (up to 5,000km).

Q: Can I claim clothing?
A: Only if it’s protective or has your business logo. Everyday clothes? Nope.

Q: What if I use my home as my main place of business?
A: You might be able to claim a portion of rent/mortgage interest, rates, and insurance. But be careful—this can affect your capital gains tax when you sell.

Q: Do I need to register for GST if I’m under $75,000?
A: No, but you can if you want to claim GST credits. Over $75,000? Registration is a must.

Q: How do I handle cash jobs?
A: Declare every cent. The ATO is cracking down on cash-in-hand work.

Q: What if I made no money this year?
A: Still lodge a return and report your business income (even if it’s zero) and expenses.

Q: Can I claim training or courses?
A: If it’s directly related to your current business, yes. If it’s for a new business or career, no.

Q: What if I have a business partner?
A: You’ll need to lodge a partnership tax return as well as your own. Each partner declares their share of the profit or loss.

Q: Do I need to keep paper receipts?
A: No, digital copies are fine—just make sure they’re clear and readable.

Q: What if I get audited?
A: If your records are solid and your claims are legit, you’ll be fine. Keep everything for 5 years, just in case.

Q: Do I have to fill out the Small Business Schedule if I’m just a sole trader?
A: Yep! If you’re running a business—even solo—you need to complete the SBS as part of your tax return.

Q: What if I made a loss?
A: You still need to report it. You might be able to carry the loss forward to offset future profits, but there are rules—check the ATO website or ask a tax agent.

Q: Can I claim my car?
A: Only the business portion. Keep a logbook or use the cents-per-kilometre method. No logbook = no claim for most expenses.

Q: I use my personal bank account for business—does that matter?
A: It’s not ideal. The ATO prefers you keep things separate. At the very least, keep clear records of what’s business and what’s personal.

Quick Checklist

• ABN Registered

• All Income Declared

• Business Expenses Claimed

• Home Office Costs Sorted

• Super Contributions Considered

• GST Registered (if earning $75,000+)

• eCashbooks in Use

• Bank Account Separated

• Receipts Saved Digitally or on Paper

• Records Kept for 5 Years

Find out more about how easy your Freelancer Tax Return is

Still got questions? Fire away—no question too silly, no jargon, just straight answers.

Ready to make tax time easy? Let GoTax handle the heavy lifting—smart, simple, and 100% online. Start now at www.gotax.com.au