Partnerships and trusts sit in the middle — they lodge a tax return, but generally don't pay tax at the entity level. Instead, income flows through to partners or beneficiaries.

What applies to you:

• The entity itself lodges an information return, but tax is paid by the individuals/entities receiving the distributed income.
• Trust distribution resolutions must generally be finalised before 30 June — missing this can result in the trustee being taxed at the top marginal rate on undistributed income.
• Partnerships need clear, documented profit-sharing arrangements, especially if they've changed during the year.
• GST and PAYG withholding obligations still apply at the entity level if registered and employing staff.

What to prepare now: Confirm trust resolutions are drafted and signed before the cut-off, and review partner drawings against actual profit share to avoid surprises at tax time.

Sole traders have the simplest legal structure — but that doesn't mean the simplest tax outcome, since business income is taxed at personal marginal rates.

What applies to you:

• Business income and expenses are reported on your individual tax return (via a business schedule), not a separate entity return.
• There's no company tax rate to fall back on — profit is taxed progressively, which can mean a heavier tax burden in a strong year.
• PAYG instalments are common for sole traders once income crosses ATO thresholds, meaning tax is paid throughout the year, not just at lodgment.
• Superannuation isn't compulsory for yourself as a sole trader, but voluntary contributions can be a valuable tax-planning lever.

What to prepare now: Review whether your income level this year makes moving to a company or trust structure worth exploring, and check your PAYG instalment amount reflects your actual current income.