What is a sole trader?
A sole trader is the simplest business structure in Australia. You operate your business as an individual, and there is no legal separation between you and your business. Most independent sales agents start as sole traders because the setup is quick, inexpensive, and straightforward.
Step 1: Get your ABN
An Australian Business Number is free to obtain and takes about 10 minutes online through the Australian Business Register (ABR) website. You will need your tax file number, personal details, and a description of your business activity.
For sales agents, your business activity is typically "commission agent services" or "sales agent services."
Step 2: Register a business name (optional)
If you want to trade under a name other than your personal name, you need to register a business name through ASIC. This costs around $39 for one year or $92 for three years.
Many agents simply operate under their own name, which requires no separate registration.
Step 3: Consider GST registration
You must register for GST if your annual turnover is $75,000 or more (or you expect it to be). Below that threshold, registration is optional.
If you register for GST, you charge 10% GST on your commission invoices and can claim GST credits on business expenses. You will need to lodge Business Activity Statements (BAS) quarterly.
Step 4: Set up a business bank account
While not legally required, having a separate bank account for your business income and expenses makes everything cleaner. It simplifies record keeping, makes tax time easier, and helps you see how your business is actually performing.
Step 5: Understand your tax obligations
As a sole trader, your business income is reported on your personal tax return. Key things to know:
- Set aside 25% to 30% of your income for tax from day one
- Lodge a tax return annually by 31 October (or later if using a tax agent)
- Claim deductions for business expenses including phone, internet, travel, and home office costs
- Pay PAYG instalments if the ATO asks you to, which usually kicks in after your first profitable year
Step 6: Consider insurance
Common insurance types for sales agents include:
- Professional indemnity insurance: Covers claims of negligence or bad advice
- Public liability insurance: Covers injury or property damage claims
- Income protection insurance: Replaces income if you cannot work
Getting started on Zepys
Once your ABN is set up, you can add it to your Zepys profile and start accepting commission opportunities. The platform tracks your earnings, which simplifies your record keeping and helps you stay on top of your tax obligations.