To see your take‑home after tax, salary calculator Australia.
Company and Sole Trader Tax Calculator Australia
Compare the tax outcomes of operating as a sole trader versus a company. This tool estimates the income tax for your business, showing whether the flat company tax rate or personal sole trader tax rates are more effective for your bottom line.
Business & Salary Details
Enter your estimated annual profit and the salary you would draw as a director to see the tax for each company structure.
Overall Financial Position
Which structure leaves you with a better net position (cash in hand + business net assets)? This compares the sole trader tax rate against company taxation.
-$625
Sole Trader Advantage
If this is positive
$625
Company Advantage
If this is positive
Sole Trader
Company
Understanding Business Taxation Structures
The key difference between a sole trader and a company lies in how money flows and how it's taxed, impacting the final income tax for the business.
Sole Trader Tax Rate Flow
As a sole trader, you and the business are the same legal entity. All profit flows directly to you and is taxed at your personal marginal tax rates. There is no special tax rate for a sole trader.
Company Tax Rate Flow
A company is a separate legal entity. It earns the profit and pays tax at the flat company taxation rate. You, as the director, are an employee and are paid a salary, which is then taxed at personal rates.
Frequently Asked Questions
Related Business Structure Tools
Choose the right structure, then use these tools to understand your full obligations.