Countries/Australia
Australia

Starting a business in Australia

A 30% headline rate with a lower band for smaller active businesses, and a resident director requirement that non-residents have to solve first.

Pty Ltd company or Sole trader?All guides
At a glanceVerified Sep 2026
30%
Corporate tax
25%
Base rate entity
10%
GST
AUD 0
Minimum capital
Verified against official sourcesSee citations →

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The decision that shapes everything: company or sole trader

Pty Ltd company
ASIC registered
  • 25% to 30% corporate tax depending on turnover and income
  • At least one director must ordinarily reside in Australia
  • Liability stops at the company
  • Annual ASIC review fee and solvency declaration
vs
Sole trader
ABN only
  • Registered with an ABN, no incorporation
  • Taxed at personal marginal rates
  • Personally liable for all business debts
  • GST registration required above AUD 75,000 turnover

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