What is the tax-free threshold?

Sole traders

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.

Company

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%.

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