How Much Tax to Set Aside as a Sole Trader in Australia
There is no one set percentage that works for every sole trader. The right reserve rule depends on annualised income, expenses, GST registration, HELP settings, and whether you also want to set money aside for super.
Why guessing a flat percentage fails
A flat rule can under-save or over-save because it ignores GST, expenses, HELP debt, and super preferences. What matters is not one invoice in isolation, but the recurring pattern the app annualises into a full-year reserve rule.
What usually changes the rule most
- Whether GST needs its own bucket
- How much annual business expense reduces taxable profit
- Whether HELP debt lifts the tax bucket
- Whether you also want to reserve for super
Next steps
Use the Buffer app when you need the reserve rule you can apply immediately. If you need deeper annual modelling, go to the full sole trader tax calculator.