- Sole traders pay individual tax rates plus the 2% Medicare levy on business profit.
- No super guarantee for yourself – you can claim a deduction for personal super contributions (within the $32,500 cap).
- After your first return with business income over $4,000, the ATO may put you into quarterly PAYG instalments.
- Register for GST once turnover reaches $75,000.
FAQ
How much should a sole trader set aside for tax?
On $80,000 profit with no other income, about 20% – $16,120 of tax and Medicare.
Sources (checked 6 November 2026): ATO individual income tax rates 2026-27; Medicare levy; low income tax offset. ATO, PAYG instalments; ATO, personal super contributions.