Medicare levy rate
2%
Australian residents; shade-in between low-income thresholds
🇦🇺 Australia2026–27 Tax YearATO RatesGST + PAYG flags
Sole Trader Calculator Australia 2026
Enter annual turnover and deductible expenses (AUD) — get income tax, Medicare levy, take-home, GST registration likelihood, and a PAYG instalment estimate. Employer Super Guarantee is A$0 for sole traders. Optional HELP, private health, and concessional super.
By Sammy S. · Founder · AuthorUpdated for 2026
$43,730
Take-home on A$50k
$75,000
GST threshold
$1,568
PAYG / quarter (A$50k)
2026–27
Tax year
Calculate sole trader take-home (AUD)
Enter turnover and expenses — we estimate income tax, Medicare, GST likelihood, and PAYG instalments on taxable profit.
Sole trader inputs (AUD)
Enter turnover and expenses — we estimate income tax, Medicare, GST likelihood, and PAYG instalments
A$
GST-exclusive tax base. GST registration flag uses turnover vs $75,000.
A$
Allowable business costs — capped at turnover in this model.
Turns MLS off when cover applies
A$
Personal concessional contributions reduce taxable income in this model.
Comparing a job offer? See Sole Trader vs Employee or the Australia paycheck calculator.
Take-home (AUD)
$43,730
from $50,000 taxable profit
Total tax
$6,270
12.5% of profit
Employer SG
$0
sole trader
Effective rate
12.5%
tax ÷ profit
Tax breakdown
Taxable profit$50,000
Income tax$5,270
Medicare levy$1,000
GST registration likelyNo
PAYG instalment / quarter≈ $1,568
Take-home$43,730
- • PAYG instalments may apply — educational estimate ≈ $1,568 per quarter (ATO entry rules; confirm with the ATO).
- • Employer Super Guarantee is A$0 for sole traders — fund your own super separately.
How to use
1
Enter turnover (A$)
Gross business income for the year — GST-exclusive tax base in this model.
2
Add deductible expenses
Allowable business costs reduce taxable profit (capped at turnover).
3
Choose residency & options
Australian resident, foreign resident, or WHM — plus HELP, PHI, and concessional super.
4
Review take-home & flags
Income tax, Medicare, GST registration likelihood, and PAYG instalment estimate.
Compare paths
On equal A$50k, cash take-home can tie with employees — the package gap is Super Guarantee.
Sole Trader vs EmployeeSole trader hubWhat we model
Taxable profit
Turnover − deductible expenses
Tax-free threshold (resident)
$18,200
Medicare levy
2% (with low-income shade-in)
MLS (no private hospital cover)
1%–1.5% above $105,000 (single)
HELP / HECS
Marginal repayments from $69,528
The take-home and tax figures above come from the turnover, expenses, residency, and options you enter—not a third-party feed. We treat taxable profit as turnover minus deductible expenses, then apply the same Australian income-tax and Medicare engine used for employment PAYG. GST registration likelihood and PAYG instalment estimates use published ATO thresholds. Below are the formulas, steps, and a worked example from the same engine as the live calculator.
Worked example
$50,000 turnover, $0 expenses, Australian resident, 2026–27
| Annual turnover | $50,000 |
| Expenses | $0 |
| Residency | Australian resident |
| Taxable profit | $50,000 |
| Income tax | $5,270 |
| Medicare levy | $1,000 |
| Take-home | $43,730 |
| Employer Super Guarantee | $0 |
| Effective tax rate | 12.5% |
- Turnover $50,000 − expenses $0 = taxable profit $50,000
- $5,270 income tax + $1,000 Medicare levy = $6,270 total tax (12.5% of profit)
- $50,000 − $6,270 tax = take-home $43,730
- Employer Super Guarantee $0 (sole traders self-fund)
Formulas
- Taxable profit: Turnover − deductible business expenses (expenses capped at turnover)
- Income tax: Resident / foreign / WHM brackets on taxable income after optional concessional super (resident tax-free threshold $18,200; LITO up to $700)
- Medicare levy: 2% for residents with shade-in between $28,011 and $35,013
- MLS / HELP (optional): MLS when no private hospital cover above single tiers; HELP marginal repayments from $69,528
- Take-home: Taxable profit − concessional super − income tax − Medicare levy − MLS − HELP (super is A$0 when unused)
- Employer Super Guarantee: Always A$0 for sole traders — self-fund separately
- GST registration flag: Likely when turnover ≥ $75,000 (ATO). Standard GST rate 10% shown for education; collected/remitted GST not modelled.
- PAYG instalment estimate: Educational quarterly estimate when profit and tax payable meet ATO entry factors — confirm with the ATO
Calculation steps
- Compute taxable profitTurnover − expenses
Expenses cannot exceed turnover. Profit is the base for income tax and Medicare.
- Apply residency and optionsResidency · HELP · private hospital cover · concessional super
Same option set as the Australia paycheck engine for residents, foreign residents, and working holiday makers.
- Run income tax + MedicareBrackets, LITO, Medicare levy, optional MLS/HELP
Uses published ATO rates for financial year 2026–27.
- Flag GST and PAYG instalmentsGST if turnover ≥ $75,000; PAYG instalment estimate when ATO entry factors apply
Flags are educational likelihoods — not GST ledgers or ATO instalment notices.
- Return take-home and notesTake-home, tax lines, SG A$0, GST/PAYG notes
Rounded to cents where the engine returns cents; display uses AUD formatting.
We model sole-trader trading profit under standard individual rates—not company structures, trusts, partnership splits, or GST collected/remitted ledgers. Family MLS thresholds, spouse income, and complex HELP repayment-income adjustments can differ from this single-filer model. PAYG instalment amounts are educational estimates from ATO entry factors, not your ATO notice. Results are planning estimates, not ATO advice.
Key takeaways — Australia sole trader tax (2026–27)
- On $50,000 turnover with A$0 expenses (2026–27 resident): about $43,730 take-home after $5,270 income tax and $1,000 Medicare.
- Employer Super Guarantee is always A$0 for sole traders — package equals cash take-home unless you self-fund super.
- GST registration is likely from $75,000 turnover (ATO). At $80,000 with A$0 expenses this tool flags GST likely.
- With $10,000 expenses on $50,000 turnover, taxable profit falls to $40,000 and total tax falls to about $3,495 (take-home from profit ≈ $36,505).
- PAYG instalments may apply when profit and tax payable meet ATO entry factors — about $1,568 per quarter on the A$50k expenses=0 vignette.
How Australia sole trader tax planning works
Sole traders pay income tax and Medicare on trading profit — not on raw turnover. This calculator uses the same engine as our employment PAYG tools, with A$0 employer Super Guarantee and GST / PAYG instalment flags.
Turnover vs taxable profit
Turnover is gross business income. Taxable profit is turnover minus deductible expenses. Take-home is profit after income tax, Medicare levy, and any MLS or HELP you model.
Unlike employees, sole traders do not receive employer Super Guarantee on trading profit — package equals cash take-home unless you self-fund.
What we model
Taxable profitTurnover − deductible expenses
Tax-free threshold (resident)$18,200
Medicare levy2% (with low-income shade-in)
MLS (no private hospital cover)1%–1.5% above $105,000 (single)
HELP / HECSMarginal repayments from $69,528
Employer Super GuaranteeA$0 for sole traders
GST registration threshold$75,000 (10% rate for education; amounts not modelled)
Australian resident income tax bands (2026–27)
Headline resident structure used by the engine. Foreign residents and working holiday makers use different brackets — switch residency in the calculator.
| Rate | Taxable range | Notes |
|---|---|---|
| 0% | A$0 – $18,200 | Tax-free threshold (Australian residents) |
| 15% | $18,201 – $45,000 | 2026–27 Stage 3 resident band |
| 30% | $45,001 – $135,000 | 2026–27 Stage 3 resident band |
| 37% | $135,001 – $190,000 | 2026–27 Stage 3 resident band |
| 45% | Over $190,000 | Top resident rate (excludes Medicare levy) |
LITO (up to $700) phases out by $66,667. That reduces tax for mid incomes on trading profit.
Medicare levy & surcharge
Medicare levy applies to Australian resident sole traders (with low-income shade-in). MLS can add 1%–1.5% without private hospital cover once income crosses the single tiers.
Low-income shade-in
$28,011 – $35,013
2026–27 single shade-in band (engine model)
MLS tier 1 start (single)
$105,000
Applies when you have no private hospital cover
HELP / HECS in the calculator
Repayments only apply if you enable a loan type. From 1 July 2025 HELP uses a marginal system with a nil band to $69,528.
| Item | Detail | Notes |
|---|---|---|
| Nil band | Up to $69,528 | No compulsory HELP repayment |
| Marginal system | From 1 Jul 2025 | Repayments only on income above each threshold (not a flat % of all income) |
Take-home by turnover (expenses = A$0)
Australian resident, no HELP or concessional super. GST likely when turnover ≥ $75,000. Figures from our engine for financial year 2026–27.
Worked examples — A$50k and A$80k turnover
Expenses = A$0 unless noted — all from the same engine as the live calculator.
A$50k resident, no HELP
$43,730
Tax $5,270 · Medicare $1,000
A$80k resident + HELP
$62,309
HELP ≈ $1,571
A$80k (GST flag on)
$63,880
GST likely · tax $14,520
When to use this sole trader calculator
Useful if…
- •Sole traders and contractors estimating tax on trading profit (AUD)
- •Comparing expense levels before setting aside tax money
- •Checking whether GST registration is likely near the ATO threshold
- •Planning for quarterly PAYG instalments vs annual tax return timing
Use other tools if…
- •Company, trust, or partnership structures (different rules)
- •GST collected/remitted ledgers — this tool flags likelihood only
- •Family MLS thresholds, spouse income, or dependents shade-in details
- •Final ATO liability after lodgement adjustments
Common mistakes
Treating turnover as take-home
Taxable profit is turnover minus expenses. Income tax and Medicare still apply to that profit — cash left is not the same as invoiced revenue.
Expecting employer Super Guarantee
Employees receive employer SG on top of salary. Sole traders get A$0 employer SG and must contribute to their own super.
Ignoring the GST registration threshold
ATO GST registration generally applies from $75,000 GST turnover — not only when you “feel big”. This tool flags likelihood; it does not model GST remittances.
Forgetting PAYG instalment cash flow
Unlike PAYG withholding each payday, sole traders often pay instalments quarterly. Plan cash flow early if entry thresholds apply.
Sole trader checklist
- 1Enter GST-exclusive turnover for the financial year you are modelling.
- 2Claim only allowable business expenses — do not invent deductions.
- 3Select Australian resident, foreign resident, or working holiday maker.
- 4Toggle HELP/HECS if compulsory repayments apply to your income.
- 5Mark private hospital cover if you want MLS off the estimate.
- 6Watch the GST flag once turnover approaches the ATO registration threshold.
- 7Budget for PAYG instalments if the estimate shows a quarterly amount.
- 8Compare with Sole Trader vs Employee when weighing employment package + SG.
- 9Confirm rates on ato.gov.au before relying on a figure.
Myths vs facts
Myth: Sole traders always keep more cash than employees on the same A$50k.
On equal profit/gross with no HELP or expenses, cash take-home ties — the employee package is higher because of employer Super Guarantee. Open Sole Trader vs Employee for the side-by-side.
Myth: GST only matters once you hit A$100k.
ATO registration generally applies from $75,000 GST turnover. At $80,000 this expenses=0 vignette already flags registration as likely.
Myth: Medicare levy does not apply to sole traders.
Australian resident sole traders generally pay the 2% Medicare levy on taxable income (with shade-in) — same levy concept as employment.
Myth: HELP is a flat percentage of all profit.
From 1 July 2025 HELP uses marginal repayments above each threshold. Enabling HELP reduces take-home when repayments apply — at $80,000 profit with HELP, take-home is about $62,309 vs $63,880 without.
Glossary
- Turnover
- Gross business income for the year — the GST-exclusive tax base used in this calculator.
- Taxable profit
- Turnover minus deductible business expenses (expenses cannot exceed turnover in this model).
- Take-home
- Taxable profit after optional concessional super, income tax, Medicare levy, and any MLS or HELP you enable.
- Employer Super Guarantee
- Employer contribution into an employee’s super. Always A$0 for sole traders in this tool.
- GST registration threshold
- $75,000 GST turnover — ATO registration requirement. This tool flags likelihood only.
- PAYG instalments
- Periodic (often quarterly) payments toward expected tax — educational estimate when ATO entry factors apply.
Fixed turnover pages
Dedicated SEO pages with expenses = A$0 vignettes (includes A$80k+ for GST flag):
Related tools
- Sole Trader vs Employee AustraliaCash tie + Super Guarantee package gap on equal A$50k
- GST Calculator AustraliaAdd or remove ATO-standard GST on invoices
- Superannuation Calculator AustraliaEmployer SG, concessional cap room, and Division 293
- Australia paycheck calculatorEmployee PAYG gross → net
- Net to Gross AustraliaSalary needed for a take-home target
- Self Assessment UKUK sole trader Income Tax + Class 4
- Australia tax insightsATO rates overview
Estimates use published ATO rates for modelling — not personalised tax advice. Activity statements, tax returns, and business structures can change your real position.
FAQ
Australia sole trader — frequently asked questions
Turnover, expenses, Medicare, GST flags, and PAYG instalments (2026–27).
It estimates income tax and Medicare levy on trading profit (turnover minus expenses) for Australian sole traders and contractors. Optional HELP, private hospital cover, and concessional super. It also flags GST registration likelihood and an educational PAYG instalment estimate.
Financial year 2026–27 (1 July 2026 – 30 June 2027). Resident tax-free threshold is $18,200; Medicare levy is 2% with shade-in; HELP uses the marginal repayment system from $69,528.
About $43,730 as an Australian resident with no HELP — income tax about $5,270 and Medicare levy about $1,000 (2026–27). Employer Super Guarantee is A$0.
With $10,000 deductible expenses, taxable profit is $40,000, total tax about $3,495, and take-home from that profit about $36,505 (resident, no HELP).
When GST turnover reaches $75,000 (ATO). At $80,000 turnover with A$0 expenses this tool flags GST as likely. Standard GST rate 10% is shown for education — collected/remitted GST dollars are not modelled.
When profit and tax payable meet ATO entry factors, an educational quarterly estimate appears. On $50,000 profit with A$0 expenses, about $1,568 per quarter in this model — confirm with the ATO.
No. Employer Super Guarantee is A$0 for sole traders. Employees receive SG on top of salary — compare paths on Sole Trader vs Employee Australia.
Yes for Australian residents (unless you turn related options off). The standard rate is 2% with low-income shade-in between $28,011 and $35,013. Foreign residents and working holiday makers do not pay the Medicare levy in this model.
Only if you select a loan type. From 1 July 2025 HELP uses a marginal repayment system with a nil band to $69,528. On $80,000 profit with HELP, take-home is about $62,309 vs $63,880 without.
Resident, A$0 expenses: about $63,880 at $80,000 (GST flag on) and about $77,480 at $100,000. Open the amount pages or run the calculator for expenses and HELP variants.
The paycheck calculator models employment PAYG from gross salary (and can show employer Super Guarantee). This tool starts from sole-trader turnover and expenses, always shows A$0 employer SG, and adds GST/PAYG instalment flags.
That hub locks equal A$50k profit vs employment gross and shows the Super Guarantee package gap. This calculator lets you personalize turnover, expenses, HELP, and residency. On the locked A$50k expenses=0 vignette, sole-trader take-home matches the hub’s sole-trader column ($43,730).
No. Company and trust structures are out of scope. Use this tool for individual sole-trader / contractor profit only.
No. Figures use published ATO rates for modelling only. Check your activity statement, tax return, and ato.gov.au for your exact position.
Related calculators
Medicare Levy & MLS Calculator
Levy shade-in, family MLS & private health
Sole Trader vs Employee
Cash tie + Super Guarantee gap
Sole Trader Calculator New Zealand
NZD turnover, ACC, GST & provisional flags
Sole Trader Calculator Ireland
EUR turnover, Class S & VAT flags
Sole Trader vs Employee Ireland
Income-tax tie + employer PRSI package gap
GST Calculator Australia
Add or remove ATO-standard GST
Superannuation Calculator Australia
SG, concessional cap & Div 293
Australia Tax Calculator
Employee PAYG gross → net