Australian Business Structure Tax Calculator
Compare your take-home income across Sole Trader, Partnership, Pty Ltd and Trust structures
Choosing the right business structure is one of the most important financial decisions you will make as a small business owner in Australia. The wrong structure can cost you thousands in unnecessary tax each year – and switching later is expensive and disruptive.
This free calculator compares your estimated take-home income across all four main Australian business structures – sole trader, partnership, Pty Ltd company, and discretionary trust – using 2025-26 ATO tax rates. Use it as a starting point for an informed conversation with your accountant or business advisor.
Your Business Details
Results Breakdown
Side-by-Side Comparison
Key Assumptions & Notes
- Sole Trader: All net business income taxed at individual marginal rates. Small business income tax offset applied (8% of tax, max $1,000).
- Partnership: Net income split per your percentage. Each partner taxed at individual rates. Assumes your partner has no other income.
- Pty Ltd: Company pays 25% tax (base rate entity). Your salary is deductible. After-tax profits distributed as fully franked dividends with franking credit offset.
- Trust: Net income (after salary) distributed equally among beneficiaries. Each taxed at individual rates. Assumes other beneficiaries have no other income.
- Super (SGC): Calculated on salary at the specified rate as a business cost. Not included for sole traders/partnerships.
- Medicare Levy: 2% on taxable income. Low-income thresholds and surcharge not included.
- Tax rates: 2025-26 Australian resident rates (Stage 3 cuts). Tax-free threshold $18,200.
- GST, PAYG instalments, private health insurance surcharge, HELP/HECS debt, and payroll tax are not included.
How to use your results
The structure showing the highest take-home income is not always the best choice for your business. Tax efficiency is one factor – but asset protection, compliance costs, flexibility for growth, and your long-term succession plans all matter too.
As a general guide: a sole trader structure suits lower-income businesses and those just starting out. A partnership works well when two people share ownership and build the business together. A Pty Ltd company becomes increasingly tax-efficient as profits grow and provides personal asset protection. A discretionary trust offers the most flexibility to distribute income across family members, which can significantly reduce the overall family tax burden.
Every business situation is different. If your results have raised questions – or if you are considering restructuring an existing business – a short conversation with a business performance consultant can save significant money and headaches. Haymas works with Australian small business owners to review their structure, costs, and revenue – and make sure everything is set up to maximise what they keep.
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