Your total business income before deductions
Deductible business expenses to reduce taxable profit
Taxable Profit
$95,000.00
Net Take-Home
$62,412.00
Total Tax
$21,188.00
Effective Rate
22.3%
Quarterly PAYG
$5,297.00
Everything you need to know about tax obligations for sole traders and self-employed individuals
Self-employed tax in Australia
As a self-employed individual (sole trader), you pay personal income tax on your business profit (gross income minus deductible business expenses). The same progressive tax rates apply as for salary and wage earners. You must lodge an individual tax return and include a business schedule.
Do I need to pay super?
Super is not compulsory for sole traders, but the ATO strongly recommends contributing at least 12% of your taxable income. Concessional (pre-tax) super contributions are taxed at 15% instead of your marginal rate, which can provide significant tax savings. You can claim a tax deduction for personal super contributions.
PAYG instalments
The ATO may require you to make quarterly PAYG instalment payments throughout the year based on your estimated tax liability. This helps spread your tax payments and avoid a large bill at tax time. Your quarterly PAYG estimate is shown in the results above.
What business expenses can I claim?
You can claim expenses directly related to earning your business income, including office supplies, tools and equipment, vehicle expenses, travel costs, professional development, insurance premiums, and home office running costs. Keep records of all business expenses for at least 5 years.
ATO-Aligned: This calculator uses official ATO tax rates for the 2025-26 financial year including updated LITO, Medicare levy, and HECS-HELP repayment thresholds. Actual results may vary depending on your specific circumstances. Consult an accountant for personalised advice.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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