What tax rate applies to ABN sole trader income?

The same individual income tax bands that apply to everyone: 0% up to $18,200, 15% from $18,200 to $45,000, 30% from $45,000 to $135,000, 37% from $135,000 to $190,000, and 45% above $190,000, plus the Medicare Levy. There's no flat 'ABN tax rate' — that's a common misconception.

Do sole traders get the superannuation guarantee?

No. The compulsory 12% Superannuation Guarantee only applies to employees. As a sole trader, any super you build up has to come from your own voluntary contributions, which you can then claim as a personal tax deduction.

When do I need to register for GST as a sole trader?

Once your GST turnover reaches, or you expect it to reach, $75,000 in a 12-month period, you must register within 21 days. Taxi, limousine and ride-sourcing drivers must register regardless of turnover.

Could the PSI rules apply to my ABN income?

Yes, if your income is mainly a reward for your own personal skill or effort and you don't pass the results test (or the 80% rule plus a supporting test). If PSI applies, your income is attributed to you at individual marginal rates with limited deductions — see the PSI tax calculator for the dollar impact.

Sole Trader Tax Calculator — ABN Take-Home Income (Australia)

How ABN sole trader tax actually works

There's no separate 'ABN tax rate' in Australia — sole trader income is taxed through exactly the same individual income tax bands and Medicare Levy as employee income for FY2026-27. What's genuinely different is that nothing is withheld automatically, there's no compulsory 12% Superannuation Guarantee, and you may have GST and PAYG instalment obligations to manage yourself.

This calculator works out your income tax, Medicare Levy and an indicative GST position from your net business income, and flags where the Personal Services Income (PSI) rules could change the picture if most of your income comes from your own labour rather than a broader business.

How to use this calculator

Enter your net business income (revenue minus deductible expenses) for the year
Indicate whether you're registered for GST
Review the income tax and Medicare Levy result at FY2026-27 rates
Check the PSI warning if your income is largely from personal services

Sole Trader (ABN) Tax Calculator

How ABN sole trader tax actually works

How to use this calculator

Frequently asked questions