Verdict
Sole traders start NDIS, then typically incorporate as Pty Ltd once revenue hits $500K-$1M. Pty Ltd is more professional but complex; sole trader is simple but limited.
Pty Ltd Company vs Sole Trader ABN
Sole traders start NDIS, then typically incorporate as Pty Ltd once revenue hits $500K-$1M. Pty Ltd is more professional but complex; sole trader is simple but limited.
Pty Ltd Company
Best for: Ambitious providers planning $1M+ revenue or multi-site
Pros
- Limited liability (company shields personal assets)
- More professional for coordinators
- Better for employment of staff (clearer payroll)
- Easier to take investors or partnerships
- Lower personal tax at higher earnings
Cons
- Higher complexity (director duties, ASIC compliance, annual reporting)
- Accounting cost $1,500-$4,000/yr
- Setup cost $500-$1,500
- Mandatory audit from certain size
- GST registration required at $75K
Sole Trader ABN
Best for: Solo or partnership providers starting small and growing organically
Pros
- Quick startup (register ABN online, 30 mins)
- Minimal compliance burden
- Simple tax (included in personal return)
- Low accounting cost $200-$800/yr
- Flexible earnings structure
Cons
- Personal liability (creditors can pursue personal assets)
- Less professional perception
- Harder to employ staff (payroll complexity)
- Can't take investors (you own 100% of sole trader)