Tax time stress: Half of self-employed Aussies yet to lodge returns

With just days to go before the 31 October tax deadline, nearly half of Australia’s self-employed workers are still behind on filing their returns, according to new research from tax and accounting service Hnry. The findings show that 45 per cent of sole traders – including tradies, freelancers, and consultants – have yet to submit their tax returns, while 14 per cent haven’t even started the process.

Leaving it late could come with consequences, with the ATO warning that anyone who misses the deadline faces a $313 fine for failing to lodge on time.

Why so many are putting off tax returns

Hnry’s Sole Trader Pulse report reveals the most common reasons for procrastination:

• Time constraints: 43 per cent say they’re too busy
• Stress: 26 per cent find the process overwhelming
• Minimal rebates: 17 per cent believe the effort won’t pay off

The survey also highlights how much time and money sole traders invest in tax returns. The average self-employed Aussie spends more than 15 hours and $1,000 on preparation – eating into two working days. Many also report stress around tracking receipts (25 per cent), uncertainty about rebates (21%), and confusion over deductible expenses (15 per cent).

Olsen Joseph, a sole trader and roofer from Kiama, understands the struggle. “After a long day on-site, the last thing you want to do is sit at a computer and deal with finances – it’s not my expertise. But for all the advantages of being your own boss, it’s part of the deal. It’s tedious and time-consuming, so you tend to put it off, but that only makes it harder in the long run,” he said.

A ticking clock – act now to avoid fines

Karan Anand, Managing Director of Hnry Australia, urges self-employed workers to get on top of their tax returns before it’s too late.

“Tax season can be confusing and stressful, from tracking receipts to figuring out which expenses are deductible,” said Anand. “But with the deadline looming, it’s important to get it done. If you’re filing on your own, make sure to lodge by 31 October. And if you’re using a tax agent, you need to be on their books by that date to avoid penalties.”

The ATO is ramping up its efforts to collect overdue taxes following a more lenient COVID-era approach, meaning there’s no time to lose. Anand recommends keeping records throughout the year to avoid a last-minute scramble and reaching out for support when needed. “Whether it’s a friend, accountant, or the team at Hnry – don’t hesitate to get a second opinion,” she advised.

Some good news amid the tax stress

Despite the tax-time pressure, Australia’s self-employed sector has been thriving. The report shows that 55 per cent of sole traders have seen higher turnover this quarter – the highest rate since June 2022. In addition, 54 per cent feel financially secure, and 59 per cent are confident in their job security.

Many sole traders also report high levels of satisfaction, with 63 per cent enjoying their work, 64 per cent pleased with their work-life balance, and 55 per cent saying they feel good about their overall well-being.

“The self-employed sector, which is growing by 50,000 people annually, is the engine room of our economy,” said Anand. “They’re a resilient group – and while tax time is a headache, we can’t lose sight of the bigger picture: being your own boss is tough, but it’s also incredibly rewarding.”

With the deadline fast approaching, now is the time to act – because no one wants to cop a fine for leaving things too late.

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