Self-Employed: 2025 Tax & Compliance Guide

Published: August 2025

Running your own show in 2025? Whether you're a tradie, freelancer, consultant or creative, being self-employed means juggling jobs, clients and the ATO. But don’t panic—this guide is your secret weapon.

Do I Need an ABN?

Yes. If you’re invoicing clients or selling goods/services regularly, you’re in business—and that means you need an ABN. It’s your business's tax ID and opens the door to deductions, GST, and a little respect from the ATO.

Do I Need to Register for GST?

You must register if your turnover hits $75,000 or more in a year. Under that? Optional. But once you cross the line, you’ve got 21 days to register.

• Registered: Charge 10% GST, lodge BAS, pay GST (but claim credits).

• Not Registered: Don’t charge GST. Don’t claim GST credits. Done.

What Income Do I Declare?

Everything. The ATO loves a paper trail.

• Client payments

• Online sales

• Freelance and consulting gigs

• Any business income, even if paid in cash

What Deductions Can I Claim?

If it helps you earn your self-employment income, it might be deductible:

• Tools, tech, equipment

• Work travel, fuel, tolls (business-use only)

• Home office expenses (portion of rent, power, etc.)

• Phone and internet (business-use portion)

• Insurance (liability, income protection, etc.)

• Marketing, websites, ads

• Training, licences, professional memberships

• Legal/accounting fees

• Stock, materials, business supplies

• Rent for workspace or storage

Car expenses tip:

• Cents per km: Claim up to 5,000km @ 85c/km.

• Logbook method: Claim business-use % of all running costs.

Record-Keeping Essentials

• Keep all receipts and invoices for 5 years.

• Use software, spreadsheets or good old folders.

• Logbook required for detailed car claims.

Superannuation

• You're the boss, so you're also the one who contributes to your super.

• It's optional, but tax-deductible.

• Smart move: reduce your tax and build retirement savings.

BAS & GST Credits

• Lodge your BAS on time (usually quarterly).

• Pay 1/11th of GST-inclusive sales.

• Claim GST on business expenses (if you're registered).

Have BAS returns to do, use eCashbooks to solve that problem for you.

Tax Tips to Maximise Deductions

• Instant Asset Write-Off: Tools, laptops, phones (ATO thresholds apply)

• Prepay expenses: Insurance, rent, software subscriptions

• Write off bad debts: Can’t collect? Write it off by 30 June

• Home office: Claim internet, power, rent portion

• Keep a logbook: For bigger car deductions

• Claim the small stuff: Subscriptions, web costs, bank fees

• Super contributions: Pay before 30 June for tax deductions

• Depreciation: Don’t miss deductions on equipment over time

• Get help: A good accountant or Gotax can find hidden gold

Tools to Make It Easier

Deduction Grabber App: Track your expenses all year round. Free on Apple and Google Play. Visit www.deductiongrabber.com.au

eCashbooks: Hate bookkeeping? This makes it easy. Try it at www.ecashbooks.com

Industry-Specific Advice

Tradies, creatives, consultants, online sellers—the basics are the same. But if you want custom advice? Call Gotax or download Deduction Grabber for tailored tips.

Where to Get Help

• Visit https://www.gotax.com.au/abn-tax-return for help that speaks your language

• Use the Deduction Grabber app to track everything

• Need a human? Gotax has real ones, ready to help

FAQs: Self-Employed

Can I claim my home internet and phone? Yes, but only the business-use portion.

What if I use my car for both work and personal? Log it. Claim only the business-use %.

Do I need to pay myself super? Nope. But contributing is smart and deductible.

Can I claim meals and entertainment? Usually not. Client/staff events might qualify.

What if I make a loss? You might offset it against other income. Ask us.

Do I need to keep every receipt? Yes. Or the ATO will say, "No proof, no deduction."

Common Mistakes to Avoid

• Mixing personal and business expenses

• Not keeping records

• Not registering for GST on time

• Claiming 100% of partly private costs

• Forgetting BAS deadlines

Final Word

Self-employment is freedom—and responsibility. With good records, the right tools, and Gotax on your side, you'll nail tax time in 2025.

Start now at https://www.gotax.com.au/guest-user