Brisbane is booming – there’s never been a more exciting time to be in business here.
But here’s what many local business owners don’t realise: the structure you choose can mean the difference between paying 47% on your profits or as little as 25%. It can determine whether you’re personally liable if things go wrong, or whether your family assets remain protected.
Why Structure Matters
Brisbane’s economy is forecast to grow 68% by 2041, reaching $275 billion. This growth creates incredible opportunities, but competition is fierce and margins matter more than ever.
The right business structure helps you keep more of what you earn, protects your personal assets, and gives you the flexibility to scale.
Your Structure Options
Sole Trader: Simple But Exposed
The simplest option. You report business income in your personal tax return and pay tax at individual marginal rates up to 45% (plus 2% Medicare levy).
The major drawback? Unlimited personal liability. If your business incurs debts or faces legal action, your personal assets are on the line.
Company: Limited Liability, Tax Advantages
A company is a separate legal entity, which means limited liability. Your personal assets are generally protected if the business faces difficulties.
Companies with turnover under $50 million that meet the “base rate entity” test pay just 25% tax, significantly less than higher marginal rates. Even companies that don’t meet this test pay 30%.
The trade-offs? Higher compliance costs and more complex administration. But for Brisbane businesses with strong revenue or significant assets, these costs are worthwhile.
Trust: Flexibility and Income Distribution
Discretionary trusts are popular for good reason. Each year, the trustee can distribute income to beneficiaries in a way that minimises overall tax. Distribute to family members on lower marginal rates or to a “bucket company” paying just 25% tax.
This flexibility is particularly valuable for businesses with variable income, like hospitality operators or construction businesses that land major projects sporadically. Trust assets are also generally protected from individual beneficiaries’ creditors.
Hybrid Structures: The Best of Both Worlds
Many successful Brisbane businesses strategically combine structures. A common setup involves a discretionary trust as the operating entity, with a company acting as trustee and another company as a beneficiary to cap tax rates. This gives you flexibility when times are good and protection when challenges arise.
Real Tax Savings
Let’s look at a typical Brisbane business generating $200,000 in annual profit:
As a sole trader: approximately $87,000 in tax (including Medicare levy) if you’re in the top bracket.
As a company: $50,000 in company tax at 25%, then decide how and when to extract remaining funds.
Through a trust with company beneficiary: distribute $80,000 to your spouse (lower marginal rate), $20,000 to adult children helping in the business, and $100,000 to a bucket company. Total family tax bill around $40,000, saving $47,000 compared to sole trader.
That’s real money to reinvest in growth, equipment, staff, or take home.
When to Review Your Structure
Review your structure when:
- Your annual turnover exceeds $200,000 and keeps growing
- You’re taking on employees in higher-risk roles
- Your personal assets have grown and need protection
- You’re planning significant equipment or property purchases
- You’re considering bringing in partners or selling
- Your family circumstances change
For many Brisbane businesses, the structure that made sense at startup no longer serves them well at scale.
The Perfect End-of-Year Review
As we approach the end of another calendar year, Brisbane business owners are naturally reflecting on the year behind and planning ahead. While you’re reviewing performance and setting goals for 2026, there’s no better time to look at whether your business structure is still serving you well.
December is ideal for this review. You have a clear picture of your 2025 performance, and you have time to implement changes before the new year. Structural changes made now can position you to maximise tax efficiency for the entire 2025-26 financial year.
Our Approach
We’ve worked with hundreds of Brisbane businesses across every industry and stage of growth. Our approach starts with understanding your business, not just your numbers. Where are you heading? What keeps you up at night? What does success look like?
We analyse your current structure against your goals and Brisbane’s economic environment. Often, we find significant opportunities for improvement, whether that’s reducing your effective tax rate, better protecting your assets, or positioning you for growth.
Don’t leave money on the table or expose yourself to unnecessary risk. In a city growing as fast as Brisbane, your business structure should be a competitive advantage, not an afterthought.
Contact Advivo today at 07 3226 1800 to discuss your business structure. Let’s make sure you’re structured for success in Brisbane’s exciting business future.
