The short answer
Learn how to pay yourself correctly as a sole trader, company or trust, and understand the tax and super obligations for each structure.
How to Pay Yourself as a Business Owner
How you pay yourself depends entirely on your business structure, and each option comes with different tax and super obligations.
If you’re a sole trader, you take drawings - not wages and your income is taxed at your personal marginal rate, so it’s crucial to set aside money for tax and super.
Under a company structure, you can pay yourself either a salary (with PAYG withholding and quarterly super) or dividends as a shareholder.
If you’re operating through a trust, you don’t pay yourself directly. Instead, the trustee distributes profits to beneficiaries at year-end, and each beneficiary pays tax on their share through their own return.
Choosing the right method helps keep your tax planning clean, compliant, and stress-free.
Key takeaways
Sole traders take drawings and pay tax at personal rates, so set money aside for tax.
Company owners can mix a salary (with PAYG withholding) and dividends.
Since 1 July 2026, Payday Super means super must be paid at the same time as wages, not quarterly.
Trusts distribute profit to beneficiaries, who pay tax on their share.
Read next: how much to pay yourself when starting a business, the difference between a trust and a company, or talk to our business accountants.
Sam is as passionate about people as he is about numbers. A Chartered Accountant (CA) member and Xero specialist, he loves building long-term client relationships and providing holistic advice that helps people achieve both their business and personal goals. Problem-solving is his thing - which is handy in an industry that never stops changing.
