What is the tax-free threshold?
The tax-free threshold is $18,200 for individuals. A sole trader business structure is taxed as part of your own personal income - you are required to pay income tax at individual income rates.
There is no tax-free threshold for companies - you pay tax on every dollar the company earns. The company tax rate is currently 30% (2016-17 income year). For small business entities, the tax rate is 27.5%.
- Check out the Australian Taxation Office's (ATO) information on individual income rates and company tax.