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The simplest way to start a business in Australia β but is it right for you? We help Brisbane sole traders register their ABN, understand their tax obligations, and plan ahead for growth.
Book a 60-minute consultation β AUD $250, credited to your services if you engage. Weβll assess your situation and deliver a formal written proposal.
A 60-minute video call to assess your business structure, tax position, and registrations β and deliver a formal written proposal for our services.
Via video call Β· 60 minutes
Book Now β AUD $250
A sole trader is the simplest and most affordable business structure in Australia. You operate under your own personal name using your individual Tax File Number β there is no company, no trust, and no separate legal entity. Setting up takes as little as one business day and requires only an ABN registration with the ATO.
ABN registration is free. Business name registration costs around $43/year. No ASIC fees, no company setup costs.
Minimal reporting obligations. Use your personal TFN. Lodge one individual tax return per year covering all income.
An ABN can be issued within minutes. Business name registration takes 1 business day. You can start trading almost immediately.
Sole trader is the most common starting structure in Australia β but it has two significant drawbacks that affect nearly every business as it grows. Understanding these before you start is exactly why we offer a free consultation.
You are personally liable for all business debts and legal claims. If your business is sued, your personal assets β home, savings, vehicle β are at risk. There is no corporate veil as there is with a company or correctly structured trust.
All business income is taxed at your personal marginal rate β up to 47% including the Medicare Levy. You cannot split income with a spouse or family members. As income grows, the tax cost of remaining a sole trader increases significantly compared to a company (25% flat rate).
There is no legal boundary between you and your business. This can make accounting, financing, and future business sale more complex than operating through a company or trust structure.
Bringing in a business partner, raising external capital, or restructuring later can be costly β potentially triggering CGT and stamp duty. Starting with the right structure from day one avoids these costs.
Once we confirm sole trader is the right structure for your situation, we take care of the full setup β correctly, in the right order, aligned with your tax obligations from day one.
Your setup includes everything below, handled end-to-end:
All income earned through your sole trader business is declared in your personal tax return. You pay tax at individual marginal rates β not a flat rate. Unlike a company (which pays 25% on all profits), your tax rate rises as income grows, which is one of the main reasons we recommend reviewing your structure as earnings increase.
Tax-free threshold. No income tax payable on this income. You must still lodge a tax return if you have an ABN and are carrying on a business.
Effective rate is low at this level. Medicare Levy of 2% also applies (above the low-income threshold). Total tax payable at $45,000 is approximately $4,288 + Medicare Levy.
This is where most growing small businesses sit. At $100,000, a sole trader pays roughly $26,000 in income tax + $2,000 Medicare Levy = ~$28,000. A company on the same profit pays $25,000. The difference narrows here but compounds as income grows.
Structure review worth consideringAt this level, the gap between a sole trader's marginal rate (37β39%) and a company's flat 25% rate becomes very significant. Restructuring advice is strongly recommended before reaching this bracket.
Restructuring advice recommendedTop marginal rate of 45% plus 2% Medicare Levy = 47% effective rate on income above $190,000. A company saving of 22 cents in the dollar on this income is substantial. Remaining a sole trader at this level is rarely optimal.
Company or trust structure strongly advisedThe above rates do not include the Medicare Levy of 2%. Source: ATO β Tax rates for Australian residents.
Yes. If you are carrying on a business in Australia, you must register for an ABN. Without one, businesses paying you must withhold 47% of your invoice under the no-ABN withholding rules and send it to the ATO.
Yes. A sole trader can employ staff. You will need to register for PAYG Withholding, comply with the Superannuation Guarantee (currently 12% of ordinary time earnings from 1 July 2025), and report via Single Touch Payroll (STP).
GST registration is compulsory once your annual turnover reaches $75,000. Below this threshold, registration is optional β but there are situations where voluntary registration makes sense. We assess this as part of your setup consultation.
A sole director company (Pty Ltd) is a separate legal entity. You are not personally liable for the company's debts (with limited exceptions). The company pays a flat 25% tax rate for small businesses β versus your marginal rate as a sole trader, which can be significantly higher as income grows above $45,000.
Yes, but it can be costly. Transferring business assets to a new company may trigger Capital Gains Tax and, in some states, stamp duty. Planning the transition carefully with an accountant before making any changes is essential β we help clients through this regularly.
For 2025β26: $0β$18,200 (nil), $18,201β$45,000 (16c per $1 over $18,200), $45,001β$135,000 ($4,288 + 30c per $1 over $45,000), $135,001β$190,000 ($31,288 + 37c per $1 over $135,000), $190,001+ ($51,638 + 45c per $1). The Medicare Levy of 2% is in addition to these rates.
ABN registration is free through the Australian Business Register. A business name costs around $43/year or $101 for three years. Our fee to handle the complete sole trader setup β ABN, GST assessment, business name, and tax obligations briefing β starts from $250. We confirm the exact cost on your free consultation call.
60 minutes. Tailored to your situation. Formal written service proposal included.
β No obligation to proceed Β· Fee credited to implementation if you engageΒ Β·Β β No jargon Β Β·Β β Real advice tailored to your situation