Everyone talks about the freedom of freelancing. Nobody talks about the BAS statements.

I started freelancing three years ago. The work part was fine. The tax part nearly broke me. Not because it’s impossibly complex, but because the information out there is either too vague or written for accountants.

So here’s what I wish someone had told me.

You Need an ABN. Probably.

If you’re doing freelance work in Australia and earning more than $75,000 a year, you need to register for GST. But you need an ABN regardless. Without one, clients are required to withhold 47% of your payments. Nobody wants that.

Getting an ABN takes about ten minutes on the ABR website. It’s free. There’s no reason to delay this.

One thing people get wrong: having an ABN doesn’t make you a business. It just means you’ve got a unique identifier for tax purposes. You can still operate as a sole trader, which is the simplest structure.

The GST Threshold Trap

Here’s where people get caught. The $75,000 GST threshold is based on your projected turnover for the next 12 months, not what you’ve earned so far.

So if you land a big contract in month three and it’s clear you’ll exceed $75,000 within the year, you need to register for GST from that point. Not at the end of the year when you’ve actually hit the number.

Miss this, and you could owe GST on income you’ve already collected without charging it. That’s money out of your pocket.

BAS Statements: The Quarterly Headache

Once you’re registered for GST, you lodge Business Activity Statements quarterly. These report your income, GST collected, and GST paid on business expenses.

The first time you do a BAS, it feels overwhelming. By the third one, it’s just annoying. By the tenth, it’s background noise.

My tip: don’t leave it until the due date. Set aside an hour at the end of each month to update your records. When the BAS is due, you’ll have everything ready. It takes twenty minutes instead of two panicked days.

Deductions Freelancers Miss

This is where having good records pays off. Literally.

If you work from home, you can claim a portion of your rent, electricity, internet, and phone. The ATO’s fixed rate method lets you claim 67 cents per hour worked from home. Simple, but you need a log of hours.

Equipment is deductible. Your laptop, software subscriptions, desk, chair. If it costs under $300, you can claim it immediately. Over $300, you depreciate it over its useful life.

Professional development counts too. Courses, books, conference tickets. If it’s related to your work, it’s deductible.

But here’s what most freelancers miss: travel between client sites, professional memberships, insurance, and even a percentage of your mobile phone plan. These add up.

Separate Your Money

Open a separate bank account for your freelancing income. On day one. Before you earn a single dollar.

When payments come in, immediately move 30% into a savings account you don’t touch. This is your tax money. When the BAS or tax bill comes, the money is sitting there waiting.

I learned this the hard way. My first year, I spent everything. Tax time was brutal.

The 30% rule is rough — your actual rate depends on your income and deductions — but it’s a safe starting point for most people earning between $50,000 and $120,000.

Sole Trader vs Company

Most freelancers start as sole traders. It’s simple, cheap, and works perfectly fine until you’re earning well above $100,000 consistently.

The company structure gives you a lower tax rate (25% for base rate entities) and liability protection. But it comes with more paperwork, more compliance, and setup costs.

Don’t rush into a company structure because someone told you it saves tax. Run the numbers first. Talk to an accountant who works with freelancers, not one who mainly handles PAYG employees.

Superannuation: Your Future Self

As a freelancer, nobody pays super for you. The temptation is to skip it. Your future self will hate you for this.

You can claim a tax deduction for personal super contributions up to certain caps. This reduces your taxable income while building your retirement savings. It’s one of the best tax strategies available to freelancers, and too many people ignore it.

Even $200 a month is better than nothing. Set up an automatic transfer and forget about it.

The Accountant Question

You don’t strictly need an accountant for simple freelancing. But most people should get one anyway. A decent accountant costs $500-$1,500 a year for basic freelancer needs. They’ll almost certainly save you more than that in deductions you’d miss on your own.

Look for someone who specialises in small business and freelancers. The big firms aren’t interested in your $80,000 freelancing income, and that’s fine. You don’t need them.

Keep It Simple

Freelancing taxes aren’t hard. They’re just different from what you’re used to as an employee. The key is staying on top of things regularly rather than trying to sort out twelve months of chaos at tax time.

Get your ABN. Separate your money. Track your expenses. Lodge on time. That’s 90% of it sorted.

The other 10% is what an accountant is for.