Shorts

How to pay yourself as a business owner

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.