Australia ·
October 2026

The Pulse has slipped to 54, its lowest score in five years, with the economy at 43 and only 38% feeling financially secure. Yet eight in ten would still rather be a sole trader, with satisfaction and work-life balance their highest-rated measures.

The Pulse this quarter

54 Neutral

Down from 56 in June and the lowest since the Pulse began in October 2021. Sole traders were ‘Thriving’ through 2022 to 2024 and are now Neutral.

Pulse score since October 2021

Pulse score since October 2021
Track	Pulse score
Oct 21	57
Mar 22	64
Jun 22	63
Oct 22	64
Mar 23	66
Jun 23	63
Oct 23	67
Mar 24	69
Jun 24	67
Oct 24	68
Mar 25	63
Jun 25	60
Oct 25	59
Mar 26	60
Jun 26	56
Oct 26	54

How to read the Pulse

Every quarter, 500 Australian sole traders rate ten aspects of their business and personal life. We combine the ten ratings into one Pulse score out of 100. A score of 50 is neutral, and we group scores into five bands, from ‘In trouble’ to ‘Thriving’.

Pulse 54

In trouble

below 35

Under pressure

35 to 44

Neutral

45 to 54

Doing well

55 to 64

Thriving

65 and above

The economic outlook for Australian sole traders is the lowest it has been in the five years of the Pulse

Sole traders rate the economy at 43, the lowest in 16 Pulses, and expect no improvement in six months (43, down from 47 in June). They point to petrol prices, inflation and customers spending less.
They rate their own business higher (54 now, 57 next quarter), but what holds the Pulse in Neutral is the personal side: satisfaction (60) and work-life balance (59) remain the highest-rated measures.

The ten measures out of 100, October 2026, with change since June

The ten measures, out of 100, October 2026, with change since June
Item	The ten measures	June 2026
Personal satisfaction	60	64
Work-life balance	59	62
Job security	59	60
Business performance, next quarter	57	59
Well-being	57	60
Business performance, last quarter	54	55
Business performance, right now	54	56
Financial security	54	56
The economy right now	43	44
The economy in six months	43	47

But sole traders still value the freedom and flexibility of self-employment

Personal satisfaction (60) and work-life balance (59) remain the highest of the ten measures, and eight in ten would rather stay a sole trader than work for someone else.
When asked what draws them to being a sole trader, the most common reasons were flexible hours (68%, up from 55% in June 2024) and a sense of personal achievement (49%, from 44%).

Why be a sole trader? % giving each reason, June 2024 vs October 2026

Why be a sole trader?, % giving each reason, June 2024 vs October 2026
Item	Jun 2024	Oct 2026
Flexible hours	55%	68%
Personal achievement	44%	49%
More variety	23%	32%
Job security	22%	16%
Stable income	15%	9%

Turnover is up on paper, but financial security is down and more are rethinking their financial admin

The majority report higher turnover than last quarter, but the average amount has barely changed

60% say turnover this quarter is higher than last, and the gap between those reporting higher and lower turnover (+35 points) is the widest since the Pulse began.
Despite this, the average quarterly income amount barely changed: $21,700 this quarter, against $21,300 the quarter before. Factoring in increases in the cost of living, this is likely inflation rather than actual growth.

Turnover this quarter vs last % reporting higher (above the line) and lower (below), each track since October 2021

Turnover this quarter vs last, % reporting higher (above the line) and lower (below), each track since October 2021
Track	Higher than last quarter	Lower	Net (higher minus lower)
Oct 21	34%	38%	-3
Mar 22	46%	31%	+15
Jun 22	56%	22%	+33
Oct 22	54%	23%	+31
Mar 23	50%	28%	+22
Jun 23	48%	27%	+21
Oct 23	45%	25%	+20
Mar 24	37%	38%	-1
Jun 24	48%	29%	+19
Oct 24	55%	24%	+31
Mar 25	38%	40%	-1
Jun 25	49%	29%	+20
Oct 25	46%	26%	+20
Mar 26	47%	39%	+8
Jun 26	52%	25%	+27
Oct 26	60%	25%	+35

Only 38% rate their financial security as good, and buffers are thin

38% rate their financial security as good, down from 44% in June and 51% in March, and the first time it has been below 40%.
One in five sole traders is a single illness or injury away from no household income, which is the clearest measure of how thin the buffer is. If they could not work for a month, household income would fall a little for 37%, fall a lot for 23% and stop altogether for 20%. Only for 14% would it be largely unchanged.

Financial security rated ‘good’ % of sole traders

Financial security rated ‘good’, % of sole traders
Point	Value
Oct 22	56%
Mar 23	57%
Jun 23	56%
Oct 23	54%
Mar 24	56%
Jun 24	53%
Oct 24	54%
Mar 25	43%
Jun 25	40%
Oct 25	44%
Mar 26	51%
Jun 26	44%
Oct 26	38%

Tax and financial admin takes five hours a week and $273 a month, and two weeks before the deadline only half had lodged their return

Sole traders spend an average of 5 hours a week and $273 a month on financial admin and tax affairs such as bookkeeping, invoicing and paying suppliers. The end of financial year return takes a further 10 hours and $597 on average.
51% had lodged, 36% were preparing theirs and 11% had not started. The barriers are time, stress and cash rather than ignorance, which points to help with the process more than reminders.
48% know the fine for missing the 31 October deadline is $364, up from 35% a year ago; 13% are unaware there is a fine at all.

Time and cost of managing financial and tax affairs averages, October 2026

5 hrs

Ongoing admin, per week

10 hrs

End of financial year return

$273

Ongoing admin, per month

$597

End of financial year return

Why they have not lodged their tax return yet top reasons, % of those yet to lodge (small sample, n=58)

Why they have not lodged their tax return yet, top reasons, % of those yet to lodge (small sample, n=58)
Item	Why they have not lodged their tax return yet
Do not have the time right now	39%
The process is stressful	25%
Too confusing and complex	23%
Cannot afford the tax bill right now	21%

Almost four in ten are changing, or thinking about changing, how they manage their tax and financial affairs

38% have either changed (12%) or are considering changing (26%) how they manage their financial and tax affairs, up from 23% in 2023.

Changed or considering changing how they manage their affairs % of sole traders

Changed or considering changing how they manage their affairs, % of sole traders
Year	Have changed (12%)	Considering changing (26%)	Total
2023			23%
October 2026	12%	26%	38%

Sole traders want a say on policy, a higher GST threshold, and the super they are owed

Six in ten say sole traders are poorly represented in policy making

Only 27% say sole traders are well represented by governments, while 59% say poorly represented, up from 54% in March 2025. Dissatisfaction among sole traders with policy is building between elections, which strengthens the case for sole-trader-specific policy.
Older sole traders and older businesses are the most critical: 86% of those in business 11 years or more and 73% of those aged 55 and over, against 38% of those under 35.

Sole traders are poorly represented in policy making % agreeing, by group

Sole traders are poorly represented in policy making, % agreeing, by group
Item	Sole traders are poorly represented in policy making
All sole traders	59%
11+ years	86%
3-10 years	58%
Under 2 years	41%
55+	73%
35-54	42%
17-34	38%

Reforms meant to protect sole traders are adding paperwork and pressure now, while the benefits lag behind

Closing Loopholes redefined who counts as a contractor, and the burden of proof has landed on sole traders. Of the 44% of tradies and consultants who noticed a change, 43% were asked for more documentation, 24% to incorporate (from 15% in June) and 23% to move to PAYG (from 11%).
Separately, the Superannuation Guarantee is still not reaching everyone: 66% know a client may have to pay it for them, but only 57% of those have been paid it.

How clients are changing the way they engage % of tradies and consultants noticing a change, June vs October 2026

How clients are changing the way they engage, % of tradies and consultants noticing a change, June vs October 2026
Item	Jun 2026	Oct 2026
Asked for more documentation	52%	43%
Asked to incorporate	15%	24%
Asked to move to PAYG	11%	23%

Two-thirds support lifting the GST threshold to $100,000

60% are registered for GST, and a third of those believe they have lost business by having to charge it.
The threshold is actively capping the growth of a meaningful share of small businesses. Of those not registered, 42% stay under the $75,000 threshold on purpose.
68% support raising the threshold to $100,000, in line with inflation since it was set; 11% oppose it.

Raising the GST threshold to $100,000 % of sole traders

Raising the GST threshold to $100,000, % of sole traders
Response	Share
Support	68%
Neither / unsure	21%
Oppose	11%

Three-quarters of sole traders who invoice have been paid late in the last year

80% of sole traders invoice their clients, and 76% of them have been paid later than agreed in the last 12 months.
When it happens, 71% chase the client directly and 23% stop taking their work. Only 15% charge a late fee, and 10% write the amount off. Late payment is being absorbed by the sole trader rather than passed back to the client.

76%

of sole traders who invoice have been paid later than agreed in the last 12 months

What sole traders do when a client pays late % of those paid late

What sole traders do when a client pays late, % of those paid late
Item	What sole traders do when a client pays late
Chase them directly	71%
Stop taking their work	23%
Charge a late fee	15%
Write it off	10%

About this research

Source: Hnry Sole Trader Pulse, Track 16. Fieldwork 5–19 October 2026, n=502 Australian sole traders, maximum error margin ±4.4%. Polling by Resolve Strategic.

Pulse scores are out of 100, with 50 neutral; bands are in steps of ten.

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