SME Toolbox / Tax planning
Sole trader vs Pty Ltd calculator
Enter your projected 2025-26 revenue and expenses. See the side-by-side tax and take-home outcome under each structure, with the assumptions spelled out. Free, plain English, no sign-up.
Most efficientStructure A
Sole trader
Taxable income$205,000
Personal income tax-$58,237
Medicare Levy (2%)-$4,100
Net take-home
$142,663
Most efficientStructure B
Pty Ltd (company)
Company tax (25%)-$51,250
Net dividend distributed$153,750
Personal top-up tax-$2,145
Net take-home
$151,605
While the numbers often favour a Pty Ltd structure as taxable income scales past the $135k bracket, the decision involves more than tax arithmetic. ASIC compliance costs, director duties, and the strategic value of asset protection all matter. Sharper thinking means looking three years ahead, not just at the next BAS.
LK Editorial / 2025-26 framework
General information only, not personal tax advice. Always consult a registered tax agent for decisions specific to your business.