Hi there!
I have a full time job, under 87,000$, and would like to start selling Art as a sole trader.
In my tax return, are the two incomes viewed separately?
Ie: How much can I earn as a sole trader before I need to pay tax on this income?
thanks heaps!
Hi @Ashditt
You report them in separate areas of the tax return. If your business is profitable it makes up your taxable income with your employment income. This is looked at together to work out how much tax you owe.
If your business makes a loss there is the possibility that you can offset this loss against your employment income. To find out more about this see non-commercial losses on our website.
How much can I earn as a sole trader before I need to pay tax on this income?
You will be taxed from the first dollar of sole trader income. As to tax payable it will be at your marginal rate. For the first year it will be calculated when you lodge your income tax return.
Hi @Ashditt
You report them in separate areas of the tax return. If your business is profitable it makes up your taxable income with your employment income. This is looked at together to work out how much tax you owe.
If your business makes a loss there is the possibility that you can offset this loss against your employment income. To find out more about this see non-commercial losses on our website.
Hi @AlliATO ,
Thank you for your reply!
Is there a way that I can work out if I need to be putting money aside (my own tax withholding), and how much, so that I’m prepared once it’s time to do the return?
Hi @Ashditt
Yep! Its good to be prepared. You can use one our tax withheld calculators to work out how much to put aside each time you're paid.
5 Nov 2025 · 6 min read time
22 Apr 2024 · 3 min read time
22 Apr 2024 · 6 min read time
2,346 views
4 replies