Compare current-year tax, household cash and company retained profit for three common structures using your household inputs.
Sole traderPty Ltd 25% / 30%Owner-spouse trust2026-27 rates
Quick guide
ST
Sole trader: profit taxed to the owner
Simple current-year personal tax comparison
PL
Pty Ltd: choose 25% or 30%
Separates dividends from profit retained by the company
DT
Trust: owner-only or 50/50 spouse split
Uses both adults' income, HELP and family MLS settings
Based on 2026-27 resident tax settings. Choose the applicable company rate and only model a spouse distribution where the spouse is genuinely entitled to it.
01 —INPUTS
Net profit after business expenses but before tax.
Salary, dividends, rent etc. outside this business.
Salary, dividends, rent and other taxable income outside this business.
Models resident individual tax, Medicare levy and surcharge, HELP repayments, company tax at the selected 25% or 30% rate, fully franked dividends, and an owner-only or 50/50 owner-spouse trust distribution. It excludes structure costs and does not determine whether a distribution, payment or loan complies with trust law, section 100A or Division 7A.
Each structure runs through the same resident tax engines used by the individual calculators. Sole trader assigns the profit to the owner. Pty Ltd applies the selected 25% or 30% company rate, separates retained after-tax profit from dividends, and gross-ups a fully franked dividend for shareholder tax. The trust model assigns all profit to the owner or splits it 50/50 with an included spouse, using each adult's other income and HELP setting plus family Medicare and MLS thresholds.
How each structure is modelled
ST
Sole trader — all profit is personal income
The calculator shows the incremental personal tax, Medicare and HELP effect of the business profit.
PL
Pty Ltd — distribution timing changes accessible cash
Retaining profit may defer shareholder tax, but the retained amount belongs to the company and is displayed separately.
DT
Discretionary trust — compare owner-only with a genuine spouse split
A spouse's existing income, HELP debt and family MLS position can materially change the result.
Scope
What this tool actually answers
A focused tax comparison: how much current-year household cash and after-tax value does each simplified structure produce? It does not advise on asset protection, succession, capital gains rollover, payroll, super, GST, trust deed powers, section 100A or bucket-company strategies. Company retained profit is value inside the entity, not cash available to the family.
FAQ
When does it make sense to switch from sole trader to a Pty Ltd company?
Tax is only one factor. With a fully franked dividend paid out in the same year, dividend imputation generally brings the combined company and shareholder tax back toward the shareholder's personal outcome. Retaining after-tax profit can defer shareholder tax, but the retained amount remains company money. Compare the calculator result with actual registration, accounting and administration quotes, then get advice on liability, payroll, super and asset-protection consequences.
Why can an owner-spouse trust split reduce tax?
A 50/50 distribution can use both adults' tax brackets when one spouse otherwise has lower taxable income. The outcome depends on each spouse's other income, HELP debt, private hospital cover and the family Medicare levy surcharge thresholds. The beneficiary must be genuinely entitled to the distribution; arrangements where another person receives the benefit may attract section 100A.
Does the calculator account for setup and running costs?
No. The comparison excludes ASIC registration and annual review fees, trust deed work, accounting, bookkeeping, payroll and ongoing administration. Those amounts vary, so the calculator does not insert an unverified generic estimate. Obtain quotes for your circumstances and subtract them from the displayed after-tax value.
Is retained company profit available for personal spending?
No. The calculator shows retained profit separately because it is legally held by the company, not paid to the household. Payments or loans to shareholders or their associates may be treated as dividends under Division 7A unless the rules are satisfied.
What does this calculator NOT model?
It does not model salaries, super contributions, GST, business losses, bucket companies, minors, section 100A outcomes, CGT on restructuring, asset protection or multi-year timing. The company rate is selected manually: the 25% base rate generally requires aggregated turnover below $50 million and no more than 80% base rate entity passive income.