Business Structure Calculator

Methodology and assumptions

• · Uses FY2025–26 personal tax brackets including Medicare levy and Division 293 effects
• · Models corporate tax at 25% small business rate (where eligible) and 30% base rate
• · Service trust modelling assumes ATO PCG 2017/D11 safe-harbour fee ranges
• · Hybrid structure assumes typical spouse-on-lower-income family configuration
• · Excludes setup costs, ongoing compliance costs, and stamp duty on restructuring

Important: Calculator output is illustrative only. Actual structure selection requires personal advice considering family situation, asset profile, projected income, and asset protection requirements. Setup costs ($1,000–$8,000) and ongoing compliance costs apply and are not modelled here.

Common questions

What income level makes a service trust worthwhile? +

Service trusts typically become viable above $250,000 of practice income, and clearly beneficial above $350,000. Below this, the setup and compliance cost may exceed the tax saving.

Can I switch structures mid-career? +

Yes, but restructuring involves stamp duty (on asset transfer), potential CGT crystallisation, and lost franking credits in some cases. Most structural changes are best made early or at specific transition points (specialty completion, practice purchase).

Do PSI rules block structure benefits? +

Personal Services Income rules attribute clinical income directly to the doctor in some structures regardless of vehicle. PSI rules apply to the doctor's own services — but operational/support income through a service trust can still flow flexibly.

Is sole trader ever the best structure? +

For doctors below $200,000 of practice income, or with no related beneficiaries on lower marginal rates, sole trader is often the most efficient given simplicity and minimal compliance cost.

What about SMSF? +

SMSFs are retirement structures, not income-earning vehicles for clinical work. They're typically held in combination with other structures, not as a substitute.

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