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As described here, I earn extra money (around $7000 per year) from a second job, in which I am running a business as a sole trader. Due to the nature of the work, I am mostly paid in cash, and deposit the cash in the bank once every couple of weeks. When I do my tax return, how do I declare this extra income? Is it sufficient to provide my bank statements showing the money that I have deposited, or is there anything else required?

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    Presumably there's some Form where you enter Income, and Expenses, subtract the two and then add to the main form. Also, this might help: rounded.com.au/blog/tax-for-sole-traders – RonJohn Jun 7 at 2:21
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    Regarding separate accounts (as touched on in anonymous's answer), some/many banks will not like you "doing business" through a personal account and may insist you open a separate business account. See this question and its answers (disclaimer: one of the answers is mine). – TripeHound Jun 7 at 6:56
  • @TripeHound are the bank fees on business accounts tax deductible? – 1123581321 Jun 7 at 22:01
  • @1123581321 Sorry, no idea. – TripeHound Jun 7 at 23:39
  • I hope you're making quarterly estimated payments! – RonJohn Sep 10 at 0:52
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The tax return has a section for completing business income. Reporting sole-trader income is very straightforward and easy to complete using MyTax online. As a sole-trader your business income is simply part of your normal personal tax return.

https://www.ato.gov.au/Individuals/Tax-return/2018/Supplementary-tax-return/Income-questions-13-24/15-Net-income-or-loss-from-business-2018/

You don't need to provide any supporting documents when completing the return, but may be required to show evidence if you're audited in the future. I use separate personal and business bank accounts to make it easier to document income and expenses, but for a sole-trader it's not necessary.

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