How Does Tax Work as a Sole Trader | Tax on Your Side Hustle

Have you started a small side hustle business or has your small sole trader business become bigger? It is important to understand the basics of how tax works as a sole trader here in Australia. In this video, I go through the basics of tax as a sole trader on your small business or side hustle.
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Do you operate as a sole trader?
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💼 How I Track My Crypto Investments for Tax Time
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📖 Chapters
0:00 Sole Trader and Side Hustle Taxes
0:40 The Basics
2:50 How to Calculate Your Sole Trader Taxes
4:01 How to Track Your Sole Trader Taxes
4:35 How Do You Pay Yourself
5:50 Bonus Tip
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Ethan 'Rooshock' (Rucioch) is an Australian business owner in his late 20's. He is the owner and director of Rooshock Accounting, an accounting firm. He is also the creator of an NFT project, Rooshocks. In his spare time, he enjoys travelling, spending time with his family and watching countless hours of sport. On this channel you will find a range of different content, including personal finance, business advice, tax tips, crypto tax tips, NFT discussions and even Ethan analysing some popular TV show businesses from an accountant’s perspective.
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CONNECT WITH ME HERE:
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Disclaimer
Every effort has been made to ensure that the information in this video is accurate. The information in this video and on this YouTube channel is for entertainment and general information purposes only. It should not be taken as constituting professional advice. You should not rely on it as financial, legal or tax advice. There are always risks in any financial decision and all decisions should be made on an individual basis. You should conduct your own research and seek independent professional advice where needed. Some of the links in this video or video description may be affiliate links. Ethan Rucioch, Rooshock Enterprises Pty Ltd, Rooshocks NFT Pty Ltd or any other related party may receive a commission through these.
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#soletrader #sidehustle #australiataxes

[EthanRooshock]

For those in the early stage of starting a business, I now have a course that will help guide you through everything you need to know when it comes to starting a business

[grtu]

Thank you thank you thank you thank you! When it comes to how taxes work and what is needed to lodge a tax return my mind starts to melt. You've really made it easier for me.

[johnranada]

This is the clearest and easiest to digest video I have seen so far thank you so much for your work. I have recently started my own soul trader business as a personal trainer and I have no idea how to do my accounts and every time I ask someone to help me out I struggle understanding jargons with taxes etc. I really appreciate this thank you

[elisabethgogos]

Quick question. So if I'm only counting my profit from my business income after expenses. Does that mean I don't declare all of earnings before expenses? So if I made 40 thousand income, then used 15 thousand for expenses. Would my income be 25000. What if I was applying for a loan and needed the 40 thousand to be income proof?

[nathanielpotter]

Ifs someone’s working ft and starts a side gig under sole trader when does GST come into play? Cheers

[MAYNARD]

Hey mate, thanks for the video. Just a question, how did you get $31867 as tax of 120k?

[wokitlikeyoutalkit]

I operate a sports equipment side hustle operating out of my home, what's the maximum percentage of rent I can deduct on my tax return? I estimate the equipment uses 30-40% of the floor space in my home /garage. Cheers!

[chrisngatai]

How can a claim for an ecommerce business I paid for please ?

[AndrewWeng]

Hi Ethan, if you make a loss for one year with your side hustle, is that taken off your income from your main job?

[oopsudead]

If you stream online and do things like unboxing or product reviews, are the purchases to do the videos tax deductible? How does this work with tax as a sole trader, assuming you are making revenue from the videos? @EthanRooshock

[GnostlyHero]

What expenses would be included for sole traders to claim tax deductions.

For example, if it costs me $10 to make a product (material supply etc) then I sell it for $12, can I claim $10 expenses as a deduction and only be taxed on the $2 profit?

[chrisyo]

Does anyone day trade here? I have to do my tax and a little unsure still how and where I add in the capital gain/loss.
Also, if I deposited say 50K out of my account into the trading account and withdrew 30k, is that a capital gain or loss??
I cannot find any info on how capital gain/loss works when you're selling off parts of your investment. Or Amy I complicating thing and it's as easy as 50k went out and 30 came back so it's a 20k capital loss? Even though the remining 20K is still sitting in the trading account.
Help me out 😂

[SamSam-dfqd]

So if we work for Uber and make $50, 000 a year but our expenses in fuel, servicing, rego etc is let's say - $20, 000 - do we pay tax on the $50, 000 or $30, 000?

[jamesmcleod]

I've watched many videos and don't usually leave a comment.

But the way you've explained all of this. It's clear black & white now in my head. Thankyou 🙏

[nnheifg]

If im earning more then $18, 000 on my first job and then under $18000 on my abn will i get taxed on that because its a second job or will not because its under $18000. Or does my income need to be under $18000 all together??

[denskiz]

I make $3000 per year on my side hustle walking dogs. I have a van that I use exclusively for the side hustle. Can I claim my yearly rego and car maintenance as a expense say $1500. So my taxable profit will be 1500 (3000-1500). Do I need proof/records for these business expenses?

[hotherside]

Thanks for this video Ethan, super helpful.
Keen to watch a video if you end up covering an exmpale video for people who have a full-time job and wanting to start a side hustel (start up) as a sole trader. First few years would be full development phase, so there won't be any additional income as a sole trader.

With this, is it possible to get tax deduction benefits for buying equipments and online services to get the business up and running?

[lehangtq]

Thank you very much so much for share your video, very helpful ❤

[andreadiaz-lizw]

Hi I am international student, I have ABN, but I have one question I was working like cleaner in the part MAIN BUSINESS OR PROFESIONAL ACTIVITY I don´t know what is the option, Can you help me please ??? Regards

[Kate-qwer]

Thank you! that's a great easy explanation for us Sole traders.🙂