Your profit and household
All amounts in $ for the 2026-27 year. Change any figure and the page recalculates. Yellow boxes are waiting for an entry.
After-tax money under each structure
After-tax value is the cash your household keeps for the year, plus any after-tax profit left inside a company. Money left in a company is not in your hands.
After-tax value at your profit ($)
Company kept: after-tax profit left in the company. Company paid: all of it paid to you as fully franked dividends.
How the gap changes as profit grows
The same household and settings, at business profits from nil to 500,000.
After-tax value by business profit ($)
What the comparison leaves out
Tax under each structure
Who is taxed, on what, and what is left. Partnership and trust income is taxed in the hands of the people who receive it.
About this calculator
Purpose. To compare, for one year's business profit, how much after-tax money an Australian resident household keeps as a sole trader, a partnership, a company, or a discretionary trust that distributes all its income. It shows outcomes at the figures you enter; it does not say which structure suits you.
Assumptions and why we chose them. You can change every assumption above.
- 2026-27 resident tax rates, the low income tax offset, the 2% Medicare levy, the Medicare levy surcharge (family thresholds when a spouse is included) and HELP repayment rates, as published by the ATO. Rates as at , for the 2026-27 financial year. The 2026-27 Medicare low income thresholds were not yet published, so the 2025-26 single thresholds are used for each person.
- The example is 220,000 of profit, no other income, a spouse with no income, hospital cover and no HELP debt. It is the worked example we test the page against.
- A 50% share each, because partners and beneficiaries are often treated equally; change it to match your agreement or the trustee's likely decision.
- The company pays tax at 25%, the base rate entity rate most small trading companies use. Paid out profit goes to you alone as fully franked dividends.
- The trust distributes all its income each year, so the trust itself pays no tax.
- Extra running costs default to 0 so the comparison shows tax alone; enter your own estimate to see their effect.
Limitations and their effect.
- Salaries and super contributions paid by a company or trust are not modelled. They are often used in practice and change every number here.
- Personal services income rules are not tested. If they apply, income is taxed to you personally and the company and trust results collapse to the sole trader result.
- It does not test Division 7A, section 100A, Part IVA or trust law. Results assume the trust split is genuine and paid to the beneficiaries, and that nobody takes money from the company other than as a dividend.
- Business losses, multi-year timing, capital gains, stamp duty or capital gains tax on restructuring, GST, payroll tax, bucket companies and distributions to children are outside it. Each could change the ranking.
- Family Medicare levy reductions, the senior and pensioner offset and other offsets are not modelled, which mainly affects households on low incomes.