Sole Trader Tax Calculator Australia

Free sole trader tax calculator for Australian self-employed individuals. Calculate your income tax, Medicare levy, and Small Business Income Tax Offset based on your business income and deductible expenses. Includes estimated quarterly BAS obligations and super contributions.

Business details

FY 2025-26
$

Total revenue/sales (excl. GST if registered)

$

Deductible business costs

$
$

Personal concessional contributions

Net Income After Tax

$0

$0/month

Total Tax

$0

Effective rate: 0.0%

Tax Breakdown

Business Income$0
Less: Business Expenses-$0
Net Business Income$0
Taxable Income$0
Income Tax$0
Medicare Levy (2%)$0
Total Tax Payable$0

Est. Quarterly PAYG Instalment

$0

Tax guide for Australian sole traders

As a sole trader in Australia, your business income is taxed as personal income. You report your business earnings and expenses on your individual tax return. The ATO treats your business profit (income minus expenses) as part of your total taxable income.

Key obligations for sole traders

  • Lodge an individual tax return each year, including a business schedule
  • Register for GST if turnover exceeds $75,000
  • Lodge quarterly BAS if GST registered
  • Pay PAYG instalments quarterly once the ATO notifies you
  • Keep business records for at least 5 years

Reducing your sole trader tax

Maximise deductions by claiming all legitimate business expenses, make concessional super contributions (up to $30,000/year), prepay expenses before 30 June, and use the instant asset write-off for business assets costing less than $20,000.

Frequently asked questions

Sole traders are taxed on their business profit (income minus expenses) at individual income tax rates. Business income is included in your personal tax return. You don't pay a separate 'business tax' like companies do.

The Small Business Income Tax Offset (SBITO) provides a tax offset of up to $1,000 for sole traders with business turnover less than $5 million. It's calculated as 8% of your net small business income, capped at $1,000 or your total tax payable.

You must register for GST if your annual turnover is $75,000 or more. Once registered, you charge 10% GST on sales, can claim GST credits on purchases, and lodge quarterly BAS returns.

Yes, sole traders can make personal super contributions and claim them as a tax deduction. This reduces your taxable income. The concessional contributions cap is $30,000 per year.

Common deductions include: home office expenses, vehicle expenses, tools and equipment, professional development, insurance, accounting fees, phone and internet, advertising, and depreciation of business assets.

Automate your tax & accounting

OneBookPlus handles invoicing, GST tracking, BAS prep, and ATO lodgement automatically.

Sole Trader Tax Calculator Australia — ABN Tax Estimator