# Estimate Australian sole-trader income tax

Estimate a resident sole trader’s annual income tax, Medicare levy, small business tax offset and take-home earnings, with the balance to pay and PAYG instalment entry.

Canonical: https://aroai.com/tools/au_business_income_tax/

## Tool reference

MCP tool ID: `au_business_income_tax`. Availability: Live. Country: Australia.

Credit use: 1 credit.

## Input schema

```json
{
  "$schema": "https://json-schema.org/draft/2020-12/schema",
  "type": "object",
  "properties": {
    "tax_year": {
      "type": "string",
      "enum": [
        "2025-26",
        "2026-27"
      ]
    },
    "taxable_business_income": {
      "type": "number",
      "minimum": 0,
      "maximum": 100000000
    },
    "other_taxable_income": {
      "type": "number",
      "minimum": 0,
      "maximum": 100000000
    },
    "tax_already_paid": {
      "type": "number",
      "minimum": 0,
      "maximum": 100000000
    },
    "resident_status": {
      "type": "string",
      "description": "Resident status for tax purposes. Enter 'resident' or 'Australian resident'."
    },
    "turnover_under_5m": {
      "type": "boolean"
    }
  },
  "required": [
    "tax_year",
    "taxable_business_income",
    "resident_status"
  ],
  "additionalProperties": false
}
```

## Example input

```json
{
  "tax_year": "2026-27",
  "taxable_business_income": 110000,
  "other_taxable_income": 0,
  "resident_status": "resident",
  "turnover_under_5m": true
}
```

## Usage notes

- Resident individuals only.
- The small business offset needs confirmed turnover under $5 million.
- Deductions are not assessed: enter taxable business income.