Sole trader vs company vs trust
Total tax on the same profit under each structure. 2026-27 figures, last checked 1 November 2026.
Sole trader vs company vs trust
- Sole trader: tax and Medicare
- $83,370
- Company: tax if profit is kept in the company
- $62,500
- Company: total tax if all paid out as franked dividends
- $83,370
- Trust: tax if split equally between the adults
- $61,040
Assumptions: Owners have no other income. Company is a base rate entity (25%). Ignores super, payroll, Division 7A, the cost of running each structure and the proposed 30% minimum tax on trusts from 2028. The right structure also depends on asset protection and your plans, so talk to us before changing. Figures for 2026-27. General information and estimates only, not tax or financial advice for your situation. Accounts Bridge is not licensed to provide financial product advice.
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