Setting Up and Planning

  • I know what I can and cannot claim
  • I plan for taxation returns to be filed and payments paid on time
  • I maintain separate bank accounts and keep business and personal transactions separate
  • I have set myself up on myIR
  • I use online accounting software
  • I put aside at least 40% of all business receipts into my 2nd bank account

Planning for Taxation Income Tax in My First & Second Year

  • My first year in business is not tax-free
  • During my second year of business I:
    • must pay tax on the profit I made in the first year, and
    • may also need to pay provisional tax for my second year
  • I can choose to make voluntary tax payments during my first year of business

Tax Rates

Sole Trader Tax rates for the 2025-2026 tax year

  • Up to $15,600 10.5%
  • Over $15,601 and up to $53,500 17.5%
  • Over $53,501 and up to $78,100 30%
  • Over $78,101 and up to $180,000 33%
  • Remaining income over $180,001 39%

Corporate Tax — Flat rate for all companies 28%

GST Rate 15%