750,000 Aussies urged to lodge tax return as deadline looms
Australia, 16 October 2025 - More than half of Australia’s 1.5 million sole traders are yet to submit their tax return, with over a third citing a lack of time as the October 31 deadline fast approaches, according to new data from Hnry.
Only 42 per cent of sole traders have lodged their return so far this year, down from 51 per cent at this time last year. One in 10 Australians work for themselves - from tradies and personal trainers to care workers, designers, consultants, and freelancers - and this represents the slowest tax-filing pace since 2023, leaving hundreds of thousands at risk of ATO fines as the October 31 deadline looms.
Hnry, the world’s first all-in-one digital platform for sole traders, automatically manages and pays taxes on behalf of its users, so they never miss a deadline or risk a fine, leaving them free to focus on doing what they love. Its latest Sole Trader Pulse – the only independent survey of sole traders across Australia – reveals that 54 per cent are yet to submit their tax return, up from 45 per cent in 2024 and 47 per cent in 2023, with more than one in five not even having started.
Karan Anand, Hnry’s Australia MD, says failing to act now will come at a real cost - and soon.
“This time last year, fewer sole traders were behind, and we’re now just weeks away from ATO penalties and fines kicking in,” he says.
The ATO can issue fines of $330 for every 28 days overdue from 1 November; yet, only 35 per cent of sole traders are aware of these penalties. Another 41 per cent are aware but unsure of the details, and more than a fifth are entirely unaware of the fines.
“While we’re seeing really encouraging signs of economic growth, sole traders still need to pour all their time into running their business - it might feel like EOFY admin can wait, but ignoring it isn’t an option,” Anand says.
The survey found that among those yet to file, 35 per cent say they don’t have time, 18 per cent are worried they can’t afford the tax bill, and 17 per cent describe the process as stressful. Anand says this reluctance reflects broader challenges for sole traders.
“With the top stressors being uncertainty over their tax bill, looming deadlines, and dealing with the ATO or their tax agent, it’s no wonder many put it off,” Anand says. “But if your return is still sitting in the ‘to do’ pile, now’s the time to rip off the band-aid and get it done.”
The Sole Trader Pulse was conducted between 17 and 29 September and has a maximum margin of error of +/-4.4 per cent.
ENDS
About us:
Hnry is the world's first all-in-one service for sole traders, acting as a digital accountant and tax automation service for sole traders. Designed to make self-employment simple, affordable, and stress-free, Hnry is available in the UK, Australia, and NZ and processes billions of dollars in payments each year; it automatically calculates and pays taxes as you earn and takes care of invoicing and expenses with on-demand accountancy support - meaning you never have to think about tax again. Hnry is Australasia’s fastest-growing accountancy service, is on the Forbes Asia 100 To Watch 2025 list, and won the People’s Choice Award for ‘Fintech Organisation of the Year’ in 2022 and 2023. Find out more at www.hnry.com.au
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For further information:
Jacinda Thorn, Public Relations | +61430620616 | jacinda @thornpr.co
Morgan Spencer, Public Relations | +61411747095| [email protected]