Your Business Structure Matters

How you structure your business affects your tax obligations significantly. Most new agents start as sole traders because it is simple and cheap to set up. As your income grows, a company or trust structure might offer tax advantages. Talk to an accountant before your first BAS is due, not after.

Common Deductions You Should Be Claiming

As a sales agent, you can generally claim expenses directly related to earning your income. This includes vehicle expenses for client visits and meetings, phone and internet costs, a home office if you work from home, professional development and training, industry memberships, and marketing costs including website hosting and business cards.

Vehicle Expenses

If you drive to meet clients, you can claim vehicle expenses using either the cents per kilometre method (up to 5,000 business kilometres) or the logbook method (requires keeping a logbook for at least 12 continuous weeks to establish your business use percentage). For agents who drive frequently, the logbook method usually results in a larger deduction.

Home Office Deduction

If you work from home regularly, you can claim a portion of your rent or mortgage interest, electricity, internet, and phone. The ATO offers a fixed rate method or an actual cost method. Keep records of your usage to support your claim.

GST Registration

Platforms like Zepys provide commission reports that make it easier to track your turnover for GST purposes. If your turnover exceeds $75,000 per year (or you expect it to), you must register for GST. Even below that threshold, voluntary registration can be beneficial because it lets you claim GST credits on your business purchases. You will need to lodge quarterly BAS returns.

Superannuation

As a self employed agent, you are not legally required to pay your own super, but you absolutely should. Contributions up to the concessional cap are tax deductible, which reduces your taxable income. Start this early. Future you will be grateful.

Quarterly Tax Instalments

The ATO may require you to pay quarterly PAYG instalments based on your estimated annual income. Budget for these payments to avoid cash flow surprises. Setting aside 25% to 30% of every commission payment for tax is a safe general rule, though your actual rate will depend on your total income and deductions.

Keep Records for Five Years

The ATO can audit you going back five years. Keep receipts, invoices, bank statements, and logbooks organised and backed up digitally. A shoebox of crumpled receipts is not a record keeping system.