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%