Work out what to set aside for tax
Your business
Before GST. Your expenses and any wages are for the whole year.
More options(year, residency, HELP, Medicare)
Set aside for tax
| Business income | A$100,000.00 |
|---|---|
| Business expenses | −A$20,000.00 |
| Profit | A$80,000.00 |
| Income tax (after offsets) | −A$14,520.00 |
| Medicare levy | −A$1,600.00 |
| Tax to set aside, a year | A$16,120.00 |
| Take-home after tax | A$63,880.00 |
- Provisional. 2026–27 Medicare thresholds not yet published by the ATO; using 2025–26 values.
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Estimate only, not tax advice. Single person, no dependants, no other deductions or offsets. Not included: the small business income tax offset, PAYG instalments (the ATO sends the amounts), the Medicare levy surcharge and the standard deduction. HELP uses taxable income only. Check the ATO income tax estimator or a registered tax agent for your own return.
Where your business income goes
- Take-homeA$63,880.0063.9%
- Business expensesA$20,000.0020.0%
- Income taxA$14,520.0014.5%
- Medicare levyA$1,600.001.6%
Show as a table
| Part | Amount | Share |
|---|---|---|
| Take-home | A$63,880.00 | 63.9% |
| Business expenses | A$20,000.00 | 20.0% |
| Income tax | A$14,520.00 | 14.5% |
| Medicare levy | A$1,600.00 | 1.6% |
ABN contractor or employee on the same pay
| ABN (you) | Employee | |
|---|---|---|
| Pay before tax | A$100,000.00 | A$100,000.00 |
| Business expenses | −A$20,000.00 | – |
| Income tax and levies | A$16,120.00 | A$22,520.00 |
| Take-home | A$63,880.00 | A$77,480.00 |
| Employer super, paid on top | A$0.00 | A$12,000.00 |
The employee column treats your ABN income as a salary, with no super in it and no work expenses. Paid leave and other employment entitlements are not valued, so the comparison is about tax and super only.
How sole trader tax works
A sole trader pays income tax on business profit, which is business income less deductible expenses. The profit is added to any other income, such as wages, and taxed at the same rates as everyone else. Medicare levy and any HELP repayment are worked out on the total.
Clients generally pay an ABN invoice in full, so the tax is yours to put aside. The calculator takes the tax on your wages and profit together, subtracts the tax on your wages alone, and shows the difference as the tax your business adds. Divide it by 12 or 4 for a monthly or quarterly amount.
Example: A$100,000 of income and A$20,000 of expenses leaves A$80,000 of profit. Tax and Medicare levy come to A$16,120 in 2026–27, so you keep A$63,880, and set aside A$1,343.33 a month.
If the ATO sends you PAYG instalment notices, pay the amounts on them. This calculator does not work those out; it shows the tax for the whole year.
Source: ATO, tax rates for Australian residents · FY 2026–27 · checked 2 Nov 2026
Tax to set aside at different profits, 2026–27
For an Australian resident with no wages and no HELP debt, the Medicare levy included. Your own numbers are in the calculator above.
| Profit | Tax and levy a year | Set aside a month | You keep | Share of profit |
|---|---|---|---|---|
| A$30,000 | A$1,268.90 | A$105.74 | A$28,731.10 | 4.2% |
| A$60,000 | A$9,620 | A$801.67 | A$50,380 | 16% |
| A$90,000 | A$19,320 | A$1,610.00 | A$70,680 | 21.5% |
| A$120,000 | A$28,920 | A$2,410.00 | A$91,080 | 24.1% |
| A$180,000 | A$51,270 | A$4,272.50 | A$128,730 | 28.5% |
The ATO has not yet published the 2026–27 Medicare levy thresholds, so these figures use the 2025–26 thresholds.
Source: ATO tax rates · ATO low income tax offset · ATO Medicare levy reduction · FY 2026–27 · checked 2 Nov 2026
Income tax rates 2026–27: the same in every state
Income tax is federal, so a sole trader in NSW, VIC, QLD, WA, SA, TAS, the ACT or the NT pays the same. Most people also pay the 2% Medicare levy; people on low incomes pay less or none.
| Taxable income | Tax on this income (2026–27) |
|---|---|
| A$0 – A$18,200 | Nil |
| A$18,201 – A$45,000 | 15c for each A$1 over A$18,200 |
| A$45,001 – A$135,000 | A$4,020 plus 30c for each A$1 over A$45,000 |
| A$135,001 – A$190,000 | A$31,020 plus 37c for each A$1 over A$135,000 |
| A$190,001 and over | A$51,370 plus 45c for each A$1 over A$190,000 |
Source: ATO · FY 2026–27 · checked 2 Nov 2026
GST and the A$75,000 threshold
You must register for GST when your GST turnover (gross business income minus GST) is A$75,000 or more, or when you start a business and expect to reach it in your first year. Taxi, limousine and ride-sourcing drivers must register whatever their turnover. Below the threshold registering is optional.
The calculator uses income before GST, because GST you collect is not your income. Use the GST calculator to add GST to a quote.
Source: ATO, registering for GST · checked 2 Nov 2026
Super for sole traders
The calculator assumes no employer pays super on your business profit, so saving for retirement is your choice. Personal contributions you claim as a tax deduction count towards the general concessional cap, which is A$32,500 in 2026–27 and includes any super an employer pays on your wages. The calculator does not include voluntary contributions, so your tax would be lower if you made one. If you are unsure whether your work counts as employment for super, ask the ATO.
Source: ATO, contributions caps · FY 2026–27 · checked 2 Nov 2026
ABN or employee on the same pay
The table under the calculator compares your result with an employee who earns the same amount as a salary. The income tax is the same on the same taxable income. The differences are the expenses an ABN carries, and the employer super of 12% an employee gets on top. Paid leave and other entitlements are not valued.
To compare two offers, enter the ABN rate above and set expenses to what you expect to spend, then compare it with the pay calculator for the salary.
Common questions
Estimates only. This page gives general information, not tax advice; check your situation with the ATO or a registered tax agent.