Coping with the financial stress of a tax debt while dealing with all the ups and downs of running a sole trader business can be hard. But it doesn’t have to be that way when Wisdom Business Consultants can assist you to manage your Australian Taxation Office (ATO) sole trader tax debt. Our team of experts at Wisdom can negotiate your sole trader tax debt on behalf of your business.
Yes, it’s tempting to procrastinate and promise to deal with your sole trader tax debt some time soon, or panic and try to solve it using short term fixes. However, the ATO urges sole traders to engage with it rather than suffer the consequences of failing to negotiate tax debt owed by your business. Struggling with sole trader tax debt? Call Wisdom.
Understanding Your Tax Debt Obligations as a Sole Trader
A sole trader may also be called a sole proprietor or sole proprietorship, and the business structure is unincorporated with one person running and owning the company. Sole traders should avail themselves of all the information needed to understand their tax obligations, otherwise they can find themselves with an overwhelming tax debt.
If you’re wondering, “what are sole trader tax rates?” read on. A sole proprietor income tax submission is the same as a personal income tax return and the tax rate is calculated at the same rate as your individual personal income. Sole proprietorships do not lodge two income tax returns but include personal income tax with their sole trader business. Sole traders in Australia are taxed on a sliding scale, and as your business income grows, the amount of tax you pay increases.
Sole Trader Tax Rates
- $18,201 to $45,000: 19 cents for every $1 over $18,200.
- $45,001 to $120,000: $5,092 plus 32.5 cents for every $1 over $45,000.
- $120,001 to $180,000: $29,467 plus 37 cents for every $1 over $120,000.
- $180,001 and over: $51,667 plus 45 cents for every $1 over $180,000.
Negotiating Sole Trader Tax Debt with the ATO
In Australia, if you find yourself steeped in the stress of struggling to repay your sole trader tax debts, the ATO encourages you to reach out to them. If you are actively engaged with the ATO, no action will be taken such as reporting your debt information to a credit reporting bureau or agency. You can try to negotiate with ATO by yourself, or for a much better outcome, call on our Wisdom experts to help negotiate on your behalf.
We can ensure that your individual tax return, which includes your sole trader income, has the correct ATO sole trader business expenses and sole trader tax deductions included. If your business activities are carried out in an office, or you work from home, a portion of your home based business expenses can be deducted. Things such as rent or council rates, depreciation deductions, running expenses, mobile phone used for business purposes, occupancy expenses, and more can be claimed and they add up.
Seek Professional Advice From Our Taxation Consultants
If you’re in Australia trying to manage your ATO sole trader tax debt, it’s a good idea to seek the advice of our professional taxation consultants at Wisdom. Let the experts help you deal with your sole trader tax debt by negotiating a reasonable payment plan with the ATO, debt consolidation or other solutions to pay your business tax.
We can make sure you know that some of your losses can be offset against other income and some losses can be carried forward. We can help you seek out flexible finance options so you can make a one-off sole trader tax debt payment to avoid a garnishee notice or having the ATO report your debt to a debt collection agency or credit reporting bureau.
Contact Wisdom Business Consultants Today
With more than 50 years of collective sole trader tax debt experience in helping small businesses avert bankruptcy, Wisdom finance and tax specialists are ready right now to help. Our team is reliable, accurate and we help sole proprietors and others across Australia using our skills with the latest taxation advice and professional expertise. Contact the team at Wisdom today on 1300 277 148.
