: When is a sole trader liable for a tax refund? In what situation do businesses receive tax refunds for their business in Australia? What are the requirements of a sole trading business to be liable for a tax refund?

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As a sole trader you would fill out an Individual Tax Return and complete the Business and Professional Items Section P1 to P19, then enter the amounts from that section into Item 15 in the Supplementary Section of the Tax Return. Any business income as a sole trader will be included into your taxable income for the year together with other sources of income you may have earned in the same income year.

Whether you get a tax refund will depend on the amount of taxable income you make, the amount of tax you have already paid in instalments throughout the year, and any tax deductions and tax offsets you can claim.