Free tool
Tax set-aside calculator
Enter what a customer just paid you and your usual profit margin, and see how much of it to move aside: the GST (if registered) and a reserve for income tax on the profit portion. A rule of thumb, not your tax bill.
25 to 30 is a common starting point; adjust after your first return.
Move aside from this payment
- GST to hold for BAS
- $200.00
- Income tax reserve
- $324.00
- Total to set aside
- $524.00
- Yours to spend or reinvest
- $1,676.00
Estimated profit on this payment: $1,200.00. This is a set-aside rule, not your tax assessment.
General information, not tax advice. Confirm current rates and dates on ato.gov.au. Read the guide: tax set aside sole trader tradie.
Common questions
Why is it a percentage of profit, not the payment?+
Income tax is on profit: income minus deductible expenses. If a third of what you invoice goes on materials, the tax is on the other two-thirds.
What reserve percentage should I use?+
25 to 30 percent of profit covers most sole traders under the tax-free threshold plus a couple of brackets. Higher earners should use more. Your first tax return tells you the real rate.
What about PAYG instalments?+
Once the ATO puts you on instalments, you are paying this reserve to them quarterly. Keep setting it aside and use it to pay the instalments.
Other tools: GST calculator · BAS due dates
SmokoBooks does this every day, from your real invoices.
GST position, BAS by quarter and a tax set-aside estimate on the dashboard, worked out from what you actually invoiced and spent. From $19 a month.