1.1.S.225 Sole trader

Usage

This definition applies to all payments.

Definition

For the purposes of income and assets assessment, a sole trader is a business owned by one person.

The business:

  • 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

Last reviewed: 17 August 2015