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.