28/09/2026
Tax rate: as a sole trader, business profit is taxed at your personal marginal rate — up to 47% above $190,000. As a company, it's a flat 25% for base rate entities (turnover under $50 million, no more than 80% passive income), or 30% otherwise.
Liability: sole traders carry unlimited personal liability. Companies offer limited liability for shareholders, though directors can still be personally exposed in specific situations.
Super: sole traders don't get compulsory super paid to themselves — it has to be voluntary. As a company director/employee, the company can pay super guarantee for you, and it's tax-deductible to the company.
Admin: sole trader is one simple tax return. A company means a separate return, ASIC reporting, a director ID, and Division 7A rules on any loans or drawings.
There's no one-size-fits-all answer — it depends on your profit level, growth plans, and risk exposure.
📞 Let's work out which structure actually fits your business. Link in bio.
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