31/08/2026
Salary, drawings or dividends? The right option depends on your business structure.
How you pay yourself depends on your business structure.
- Sole trader: Take owner's drawings. You're taxed on your business profit, not your drawings.
- Partnership: Partners usually take drawings and pay tax on their share of the partnership profit.
- Company: You may pay yourself a salary, director fees and/or dividends. Each has different tax and super obligations.
- Trust: You may receive a salary if employed by the trust and/or beneficiary distributions, depending on the trust deed.
Here are some planning tips for FY 2026–2027:
- Choose a payment method that matches your structure.
- Make sure payroll, PAYG, super and STP obligations are met.
- Keep drawings, wages, dividends and distributions clearly recorded.
- Review your pay based on profitability, cash flow and business growth.
- Speak with your accountant or registered tax agent before making changes.
Need help staying tax ready all year? Book a call using the link in our profile or comment "tax" below to learn more about our services.