Estimate your annual tax, Medicare levy, and whether you need to register for GST — for Australian FY2025–26.
Enter your income and expenses
to see your tax estimate.
Sole traders pay income tax at individual rates on their net business profit. For FY2025-26: 0% on the first $18,200 (tax-free threshold), 16% from $18,201–$45,000, 30% from $45,001–$135,000, 37% from $135,001–$190,000, and 45% above $190,000. The 2% Medicare levy also applies. The Low Income Tax Offset (LITO, max $700) further reduces tax for lower earners.
You must register for GST when annual business turnover reaches $75,000 ($150,000 for not-for-profits). Ride-share and taxi drivers must register regardless of turnover. Once registered, you charge 10% GST on taxable supplies and lodge a Business Activity Statement (BAS) quarterly or monthly.
PAYG instalments are quarterly prepayments of income tax. The ATO requires them once your tax bill exceeds a threshold (generally when your notional tax is $500 or more). They prevent a large lump-sum tax bill at year end. The ATO calculates an instalment rate based on your prior year return, though you can vary this if your income changes significantly.
Yes. Sole traders are entitled to the $18,200 tax-free threshold for FY2025-26, just like any other individual. Business income is personal income for a sole trader — there is no separate company tax. The threshold applies to your total taxable income, including any salary or investment income alongside business profit.
The LITO reduces the income tax payable for lower-earning sole traders. For FY2025-26 the maximum is $700 for taxable incomes up to $37,500. It phases out between $37,500 and $66,667. The LITO is applied automatically when you lodge your tax return — it is reflected in this estimator's calculations.
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