Build your sole trader reserve rule
Start with the payment pattern that actually hits your bank. Buffer turns it into a reserve rule, but it also asks for the tax facts that materially change HELP, Medicare levy, MLS, GST credits, and deductible super.
Set aside 7 out of every 100 that lands.
On a payment of $4,500, move $297 into buffer accounts first. Estimated business costs absorb about $1,500, leaving roughly $2,703 as owner pay per typical payment.
Assumes payments of $4,500 usually arrive monthly.
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$297Per incoming paymentBusiness costs
$1,500Estimated per cash cycleOwner pay left
$2,703After costs and reservesQuarterly target
$892Useful for BAS and instalment planningThe reserve rule is only as good as these tax bases
Taxable income
$36,000Used for income tax and Medicare levy.HELP repayment income
$36,000Includes deductible super when relevant.MLS income
$36,000Used for surcharge testing under the current health-cover setting.GST status
Not registeredGST is excluded from the reserve unless you choose to model registration.Important conditions behind this estimate
- Uses single-person Medicare levy and MLS settings.
Set cashflow, then add the legal details that change tax.
This version is accuracy-first. It asks for the facts that materially change Medicare levy, MLS, HELP, GST credits, and deductible super.
Cash coming in
Define the recurring pattern you want the reserve rule to follow.
This annualises your recurring pattern. It is a planning shortcut, not a turnover test in legislation.
Enter your best annual estimate. If GST registered, use GST-inclusive amounts and set the GST credit method below.
Tax profile
These settings change HELP, Medicare levy, MLS, and family thresholds.
GST treatment
Net GST depends on whether expenses actually generate input tax credits.
Super reserve
Tell the app whether you are only reserving cash for super or also planning to claim a deduction.
See exactly where the reserve goes.
This closes the gap between the reserve ratio and the owner pay left by showing all major cash and tax components explicitly.
Income tax
5 / 100$2,848 a yearLevy + MLS
1 / 100$720 a yearHELP
0 / 100$0 a yearGST
0 / 100$0 net a yearSuper
0 / 100$0 a yearBusiness costs
33 / 100$18,000 a yearOwner pay left
60 / 100$32,432 a yearMonthly reserve target
$297Monthly owner pay left
$2,703GST credits assumed
$0HELP income base
$36,000Why your rule looks like this
- Assumes payments of $4,500 usually arrive monthly.
- Estimated business costs of $18,000 are deducted before owner pay is shown.
Use the reserve rule inside the rest of your workflow
After you set the rule, the next tool depends on whether you need BAS detail, annual modelling, or the next due date.
Go to BAS calculator
Check GST and PAYG statement-style detail after deciding how much to reserve.
Open annual tax calculator
Move from a reserve habit into broader yearly modelling when you need deeper planning.
Check due dates
Line the reserve rule up with BAS, super, and lodgment timing once the cash system is set.
Pick the next action based on what is still unclear
These routes keep the reserve rule in context instead of forcing every sole trader question through one calculator.
Need the habit and account setup?
Open the operating guide when the number is clear but the weekly routine still is not.
Need statement-style BAS detail?
Move into BAS when the reserve rule is done and the next question is GST or PAYG reporting detail.
Need the next deadline?
Open the tax calendar when timing matters more than annual modelling.
Frequently asked questions
What is a tax buffer for sole traders?
How much should a sole trader set aside for tax?
Does this calculator include GST?
Should I include super in my tax buffer?
How often should I transfer money to my tax buffer?
Tax Accuracy & Sources
Estimates a sole trader tax and GST reserve rule based on annualised income patterns. Does not constitute tax advice. Actual tax obligations depend on full-year income, deductions, and ATO assessments.