Calculator

Build your sole trader reserve rule

Start with the payment pattern that actually hits your bank. Buffer turns it into a reserve rule, but it also asks for the tax facts that materially change HELP, Medicare levy, MLS, GST credits, and deductible super.

Live reserve ratio Explicit tax assumptions Shareable URL state

Live reserve rule

Set aside 7 out of every 100 that lands.

7/100

On a payment of $4,500, move $297 into buffer accounts first. Estimated business costs absorb about $1,500, leaving roughly $2,703 as owner pay per typical payment.

Assumes payments of $4,500 usually arrive monthly.

Income tax 7 Levy + MLS 1 HELP 0 GST 0 Super 0 Costs 33 Owner pay 60

Move now

$297Per incoming payment

Business costs

$1,500Estimated per cash cycle

Owner pay left

$2,703After costs and reserves

Quarterly target

$892Useful for BAS and instalment planning

Model inputs

The reserve rule is only as good as these tax bases

Taxable income

$36,000Used for income tax and Medicare levy.

HELP repayment income

$36,000Includes deductible super when relevant.

MLS income

$36,000Used for surcharge testing under the current health-cover setting.

GST status

Not registeredGST is excluded from the reserve unless you choose to model registration.

Assumptions

Important conditions behind this estimate

Uses single-person Medicare levy and MLS settings.

Configure

Set cashflow, then add the legal details that change tax.

This version is accuracy-first. It asks for the facts that materially change Medicare levy, MLS, HELP, GST credits, and deductible super.

Cash coming in

Define the recurring pattern you want the reserve rule to follow.

Typical payment amountTime basisPayments like this usually arriveThis annualises your recurring pattern. It is a planning shortcut, not a turnover test in legislation.Estimated annual business expensesEnter your best annual estimate. If GST registered, use GST-inclusive amounts and set the GST credit method below.

Tax profile

These settings change HELP, Medicare levy, MLS, and family thresholds.

Australian tax residentTurn this off to use foreign-resident tax rates and remove Medicare levy and MLS.HELP debtUses repayment income, not just taxable income.Private hospital coverFor family mode, treat this as cover for the adults relevant to MLS.

MLS / levy status

GST treatment

Net GST depends on whether expenses actually generate input tax credits.

GST registeredUse this only if you are registered or you want to model registered cashflow.

Super reserve

Tell the app whether you are only reserving cash for super or also planning to claim a deduction.

Set aside for superThis adds a super cash bucket to the reserve rule.

Breakdown

See exactly where the reserve goes.

This closes the gap between the reserve ratio and the owner pay left by showing all major cash and tax components explicitly.

Income tax

5 / 100$2,848 a year

Levy + MLS

1 / 100$720 a year

HELP

0 / 100$0 a year

GST

0 / 100$0 net a year

Super

0 / 100$0 a year

Business costs

33 / 100$18,000 a year

Owner pay left

60 / 100$32,432 a year

Monthly reserve target

$297

Monthly owner pay left

$2,703

GST credits assumed

HELP income base

$36,000

Why your rule looks like this

Assumes payments of $4,500 usually arrive monthly.
Estimated business costs of $18,000 are deducted before owner pay is shown.

Next steps

Use the reserve rule inside the rest of your workflow

After you set the rule, the next tool depends on whether you need BAS detail, annual modelling, or the next due date.