Company Tax Rates

Year	Aggregated Turnover Limit For Base Rate Entities	Base Rate Entities	All Other Companies
2022 – 2025 incl	$50m	25.0%	30%
2021	$50m	26.0%	30%
2019 – 2020 incl	$50m	27.5%	30%
2018	$25m	27.5%	30%
2017	$10m	27.5%	30%
2016	$2m	28.5%	30%
2002 – 2015 incl		N/A	30%
2001		N/A	34%
2000		N/A	36%

From the 2017–18 income year, a company will be a base rate entity if –
- 80% or less of their assessable income is base rate entity passive income (such as, interest, dividends or rent. This replaces the requirement to be carrying on a business), and
- they have an aggregated turnover below the turnover threshold in the table to the left.
For the 2016–17 income year, the lower company tax rate decreased to 27.5%. Companies are eligible for this rate if they are a small business that both –
- has a turnover less than $10 million, and
- operates a business for all or part of the income year – see Draft Taxation Ruling TR 2017/D7 for what it means for a company to be ‘carrying on a business’.
From 1 July 2016, the maximum franking credit that can be allocated to a frankable distribution paid by a company will be based on the company’s applicable corporate tax rate.
For the 2016 year, reduced rate companies with a tax rate of 28.5%, can still pass on franking credits to their shareholders at a rate of 30%.
The rates to the left apply to the following companies –
- Public Companies (except life companies)
- Private Companies
- Corporate Limited Partnerships
- Strata Title Bodies
- Trustees of Corporate Unit Trusts
- Trustees of Public Trading Trusts