1.1.S.225 Sole trader
This definition applies to all payments.
For the purposes of income and assets assessment, a sole trader is a business owned by one person.
- is NOT a separate legal entity from the owner,
- is NOT a separate accounting entity, which means that sole traders need ONLY lodge a personal tax return,
- may be run in the owner's name OR under a registered business name, and
- may or may NOT have employees.
The owner is:
- liable for ALL the debts of the business, and
- entitled to ALL the profits of the business.
Policy reference: SS Guide 4.7.1 Assessing the Income & Assets of Sole Traders & Partnerships