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Common Tax Mistakes Sole Traders Should Avoid

Tips to help sole trader clients

The ATO is seeing sole traders make mistakes in the following areas:

  • Not reporting all income — this includes income earned outside their business (like a ‘side hustle’), cash jobs, or payments in-kind/barter deals
  • Overclaiming expenses — this includes claiming the portion of an expense related to personal use, or overstating the cost of goods sold and other business expenses
  • Calculating business losses — incorrectly claiming and offsetting losses from non-commercial business activities against other income sources
  • Misreporting personal services income (‘PSI’) to gain tax benefits
  • Not registering for GST if they are in the taxi or ride-sourcing industry, or when they reach the GST threshold, and
  • Not keeping accurate and complete records.

Running your own business is rewarding, but even small tax errors can cost you. For assistance with any of the above, please contact Omnis’ Business Tax Accountants in West Perth.

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Justin Flavel

Managing Director

Justin’s experience spans across 20 years in accounting, financial analysis and general business practice.

Although born and bred on the land, Justin’s interest was more in spreadsheets, ledgers, and finance which led him to attend university. In 1992, Justin graduated with a Bachelor of Business majoring in Accounting and Finance. As well as qualifying as a CPA member and becoming a Fellow of the Taxation Institute of Australia, he began gaining practical experience in small and mid-tier accounting practices.

During the late 90s, Justin decided to expand his horizons and travel through Europe. It was during this time that he seized the opportunity to expand his knowledge on the workings of large organisations by taking on roles in multinational corporations.

Today, Justin’s passion is in facilitating businesses to grow and evolve. His focus is on acting in the role of business mentor to help clients develop the full potential of their businesses. He joins clients on their unique journey, and provides the tools and knowledge they need along the way to make the right decisions.

Justin’s aim for his clients parallels his own philosophy and personal journey—focusing on his own career growth and business success while maintaining balance in his life with his wife and three daughters.

Omnis Group Managing Director - Justin Flavel