Free tool · 2026–27 rates
Sole trader vs company: what's the tax difference?
Start from the number that actually matters — the take-home pay you need to live on — and see both structures worked backwards from it: the gross salary a company would have to pay you, the super on top, and where every dollar of tax lands. Built by a CPA & Chartered Accountant partnership.
General comparison using 2026–27 resident rates, 2% Medicare levy, 12% super guarantee, 15% super contributions tax and the 25% base-rate-entity company rate. Ignores offsets beyond LITO, Div 293, concessional-cap effects, PSI rules (which can make a company irrelevant for personal-effort income), payroll tax and asset protection — all of which can change the answer. That's why the next step is a conversation, not a checkout.