Australia Company Tax Calculator 2025 β 25% Base Rate or 30% Full Rate
Calculate Australian company income tax at 25% (base rate entities under $50M) or 30% (full rate). Includes franking credits calculation and after-tax analysis.
$
$
Below A$50M qualifies for 25% rate %
Must be β€80% to qualify for base rate $
For franking credit calculation A$0
Company Tax
0%
Tax Rate Applied
A$0
After-Tax Profit
A$0
Franking Credits
Tax Calculation
How to Use This Australia Company Tax Calculator
Enter your company's taxable income and aggregated turnover. If turnover is below A$50 million and less than 80% of income is passive, your company qualifies for the 25% base rate. Otherwise the full 30% rate applies.
Enter a dividend amount to see the attached franking credits, which shareholders can use to offset their personal tax.
The Formula
Base rate entity: turnover < A$50M AND passive income β€ 80% β tax rate = 25%
Otherwise: tax rate = 30%
Company tax = taxable income Γ tax rate
After-tax profit = taxable income β company tax
Franking credit on dividend = dividend Γ (tax rate / (1 β tax rate))
Grossed-up dividend = cash dividend + franking credit
Otherwise: tax rate = 30%
Company tax = taxable income Γ tax rate
After-tax profit = taxable income β company tax
Franking credit on dividend = dividend Γ (tax rate / (1 β tax rate))
Grossed-up dividend = cash dividend + franking credit
Example
Small trading company, A$500,000 profit, A$2M turnover, 25% rate:
Company tax: $500,000 Γ 25% = A$125,000
After-tax profit: A$375,000
If distributing A$200,000 cash dividend:
Franking credit: $200,000 Γ (25/75) = A$66,667
Grossed-up dividend: A$266,667
Shareholder receives: $200,000 cash + $66,667 franking credit
Company tax: $500,000 Γ 25% = A$125,000
After-tax profit: A$375,000
If distributing A$200,000 cash dividend:
Franking credit: $200,000 Γ (25/75) = A$66,667
Grossed-up dividend: A$266,667
Shareholder receives: $200,000 cash + $66,667 franking credit
Extended
Franking Credits Analysis
Understand how franking credits work and calculate shareholder tax impact
See how franking credits benefit shareholders at different personal tax rates.
Shareholder Tax Impact by Personal Rate
| Personal Tax Rate | Grossed-Up Dividend | Personal Tax | Less Franking Credit | Net Tax Payable |
|---|
Frequently Asked Questions
What is the company tax rate in Australia for 2025?
Australia has two company tax rates for 2024-25: the base rate entity rate of 25% applies to companies with an aggregated turnover below A$50 million that derive 80% or less of assessable income as base rate entity passive income. All other companies pay the full 30% corporate tax rate.
What are franking credits and how do they work?
Franking credits (also called imputation credits) represent the corporate tax already paid on company profits. When a company pays a franked dividend, shareholders receive a credit for the tax paid at the corporate level. This prevents double taxation β the shareholder can offset the franking credit against their personal tax liability. At a 30% company tax rate, a $70 cash dividend carries a $30 franking credit.
What is a base rate entity?
A base rate entity (BRE) is a company that has an aggregated turnover of less than A$50 million AND 80% or less of its assessable income is "base rate entity passive income" (e.g., dividends, royalties, rent, interest). Most small and medium trading companies qualify. Investment companies typically do not.
Does Australia have a goods and services tax (GST) on top of company tax?
GST (10%) is separate from company income tax. GST is a consumption tax collected on sales and passed on to the ATO, similar to VAT. Registered businesses collect GST from customers and claim GST credits on business purchases. Company income tax is paid on net profit after expenses, not on sales revenue.
How does the small business tax offset work for individuals?
Sole traders and individual partners in a partnership (not companies) may claim the small business income tax offset of up to 16% of the tax payable on their small business income, capped at $1,000 per year. This is different from the 25% company rate for incorporated businesses and applies to unincorporated small businesses with aggregated turnover under $5 million.