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AaronF(Initiate)Initiate
7 Nov 2025

If I have a sole trader company which makes a profit, what are considerations in methods to pay yourself from the company profit - salary compared to dividend?

210 views
5 replies
210 views
5 replies

All replies

YellowPotato(Taxicorn)Taxicorn
7 Nov 2025

Do you mean you earn PSI through a company? - Generally, there shouldn't be any profit left in the company. The income/expenses should be attributed to you.


https://www.ato.gov.au/forms-and-instructions/company-tax-return-2025-instructions/instructions-to-complete-the-company-tax-return-2025/items-6-to-14/14-personal-services-income

AaronF(Initiate)Initiate
8 Nov 2025

Hi


All of the company income is PSI, but the company meets the PSB criteria. If the company meets PSB criteria, is there not allowed to be any retained profit in company in a year? ie. all net income needs to be distributed to company owner?

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Paying yourself from own sole trader company | ATO Community