Australian 2022/23 tax calculator for sole traders, freelancers and contractors
See how much income tax you should be paying with our tax calculator and prepare your business for EOFY with our free guide
Estimate your Australian income tax payable with our simple tax calculator
Tax can be taxing
When starting a new business it can be hard to know how much tax to expect your business will be required to pay at end of financial year.
But help is at hand
We've created a simple tax calculator for sole traders, freelancers and contractors to quickly estimate how much tax you'll need to pay.
Let's get fiscal
How to use: Get your tax estimate in a flash thanks to our easy to use calculator. Just enter your financial information on the left, to see your 2022/23 Australian tax estimate generated on the right. It’s that simple.
*What is a business deduction? These are expenses incurred in the day to day running of your business. Learn more about what you can claim as an expense here.
Disclaimers:
This calculator is only applicable for sole traders, freelancers and contractors. This calculator should not be used to estimate a tax refund for companies, partnerships or trusts.
This calculator does not account for any student loan repayments such as HECs or Fee-Help. If you have student loans, we do not recommend that you use this tax calculator.
The rates are for Australian Resident tax purposes only. If you are not an Australian Resident, do not use this tax calculator.
The results from this calculator should be used as an indication only. An estimated refund is approximate, and we recommend seeking advice from your accountant for accurate information.
The results are based on single person thresholds and do not take into account any tax offsets you may be entitled to when calculating rebates and tax offsets.
The Medicare levy is calculated as 2% of taxable income for most taxpayers. The Medicare levy in this calculator does not take into consideration the medicare levy surcharge.
This calculator does not account for medicare levy exemptions – learn more here.
More tax time resources
All your questions answered about lodging your 2022/23 tax return
When can I lodge my tax return in 2023?
If you are a sole trader you will only need to lodge one tax return for your business and personal income. If you plan to lodge your tax return yourself, it can be lodged between 1 July and 31 October each financial year. If you lodge with a registered tax agent they will be able to advise you on the lodgment date.
If you are a partnership, and you lodge your tax return yourself, it can be lodged between 1 July to 21 October each financial year. If you lodge with a registered tax agent they will be able to advise you on the lodgment date.
Companies and trust tax return due dates vary, we recommend checking on the ATO website or seeking advice from your accountant.
Does my business need to lodge a tax return in Australia?
Your business needs to lodge a tax return each year, even if you record a loss or don't meet the tax threshold. When lodging your return, make sure you know the rules that apply to your business structure:
- Sole trader: Lodge an individual tax return. Include all your business income on your tax return using a separate business schedule. You don’t need to lodge a separate tax return for your business.
- Partnership: Your partnership has its own tax file number (TFN) but doesn't pay income tax on the profit it earns. Each partner reports their share of the partnership income in their own tax return. Your partnership must also lodge a separate partnership return under its own TFN.
- Company: A company is a separate legal entity. You must lodge a company tax return and pay tax on the company’s income. If you’re a director, you’ll still need to lodge your own personal return as well.
- Trust: A trust has its own TFN and must lodge a trust income tax return.
If you run a not-for-profit (NFP) organisation, you may be eligible for tax concessions. Read a summary of tax concessions for NFP organisations on the Australian Taxation Office (ATO) website.
How does the tax return calculator work?
The income tax calculator helps you estimate how much tax payable you may be required to pay. This helps with financial planning for your business and knowing how much and when you may be required to pay:
- Tax is calculated based on your total assessable income
- Total business income – allowable business deductions = Total assessable income
- Your total assessable income is then applied to the relevant tax brackets. Click here to view the current tax rates from the ATO.
- Total assessable income x tax rate = Total tax payable
What factors affect your tax return?
Your business structure and income will determine what tax rates are applied and when you are required to lodge a return.
Other factors that may impact your tax return include, for residency status, foreign residents or part-time residents can be taxed at different rates, as well as student loan repayments and any applicable medicare levy surcharges.
Visit the ATO website for more information.