Tax rate for base rate entities under the thresholdĮxample: not a base rate entity because passive income is too highīest Equity Ltd is a listed investment company which invests in Australian shares.

Table: Progressive changes to the company tax rate

an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income.

interest income (some exceptions apply).

corporate distributions and franking credits on these distributions.

The aggregated turnover from any prior income year is irrelevant when working out if a company is a base rate entity for any particular income year. The aggregated turnover threshold is $25 million for the 2017–18 income year and $50 million from the 2018–19 income year.

it has 80% or less of their assessable income in that income year that is base rate entity passive income – this replaces the requirement to be carrying on a business from the 2017–18 income year onwards.

the company’s aggregated turnover for that income year is less than the aggregated turnover threshold for that income year, and.

The rate was previously 27.5% from the 2017–18 to 2019–20 income years and 26% in the 2020–21 income year.Ī company is a base rate entity for an income year if:

small business entity for the 2015––17 income years.įrom the 2021–22 income year, companies that are base rate entities must apply the 25% company tax rate.

base rate entity from the 2017–18 income year and onwards.Eligibility for the lower company tax rate depends on whether you are a: The full company tax rate of 30% applies to all companies that are not eligible for the lower company tax rate. This page shows when to apply the lower rate and how to work out franking credits.Ĭompany tax rates apply to entities which include: The full company tax rate is 30% and lower company tax rates are available in some years. There are changes to the company tax rates.

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