Company Tax Calculator Australia
Calculate your company's tax liability for 2025-26. Enter your taxable income, turnover, and passive income percentage to find your tax rate (25% or 30%), franking credits available, and dividend franking breakdown.
Based on 2025-26 ATO company tax rates. Assumes an Australian resident company.
Company's taxable income for the financial year.
Total annual turnover including connected entities. Must be under $50M for the 25% rate.
Percentage of assessable income that is base rate entity passive income (interest, dividends, rent, royalties, net capital gains). Must be 80% or less for the 25% rate.
Enter dividends to see franking credit calculations.
Enter company details to calculate tax
Company tax rates in Australia
Australia has two company tax rates. The rate that applies to your company depends on its aggregated turnover and the proportion of its income that is passive.
| Company Type | Tax Rate | Criteria |
|---|---|---|
| Base rate entity | 25% | Aggregated turnover < $50M AND passive income ≤ 80% |
| All other companies | 30% | Turnover ≥ $50M OR passive income > 80% |
What is a base rate entity?
A company is a base rate entity if it meets both of the following conditions in the income year:
- Aggregated turnover is less than $50 million, AND
- No more than 80% of assessable income is base rate entity passive income
If either condition is not met, the company pays the full 30% rate.
What counts as passive income?
Base rate entity passive income includes:
- Interest income
- Dividends and franking credits
- Rent and royalties
- Net capital gains
- Income from partnerships or trusts attributable to passive sources
Active business income (sales revenue, fees for services, manufacturing income) is not passive income.
How franking credits work
When a company pays tax, it generates franking credits equal to the tax paid. These credits are added to the company's franking account and can be distributed to shareholders with dividends.
Franking credits available = Company tax paid
Max franking per $1 dividend = Tax rate ÷ (1 − Tax rate)
At 25%: $0.3333 franking credit per $1 dividend
At 30%: $0.4286 franking credit per $1 dividend
Shareholders include the grossed-up dividend (cash dividend + franking credits) in their taxable income and receive a tax offset for the franking credits. If the offset exceeds their personal tax liability, they may receive a franking credit refund.
Worked example: $500,000 taxable income (base rate entity)
Company tax: $500,000 × 25% = $125,000
After-tax profit: $500,000 − $125,000 = $375,000
Franking credits available: $125,000
Max fully franked dividend: $375,000
If $375,000 dividend paid:
Franking credits attached: $375,000 × 25/75 = $125,000
Grossed-up dividend: $375,000 + $125,000 = $500,000
Shareholder receives $375,000 cash + $125,000 tax offset
Tax planning tip: If your company is close to the 80% passive income threshold, consider whether restructuring income sources could reduce your tax rate from 30% to 25%. For companies with significant investment income, a separate holding structure may be worth exploring with your tax adviser.
25% vs 30% company tax rate
The difference between the two rates has a significant impact on both tax paid and franking credits available:
| Taxable Income | Tax at 25% | Tax at 30% | Difference |
|---|---|---|---|
| $100,000 | $25,000 | $30,000 | $5,000 |
| $250,000 | $62,500 | $75,000 | $12,500 |
| $500,000 | $125,000 | $150,000 | $25,000 |
| $1,000,000 | $250,000 | $300,000 | $50,000 |
| $5,000,000 | $1,250,000 | $1,500,000 | $250,000 |
What does this calculator include?
- Company tax at 25% (base rate entity) or 30% (full rate) for 2025-26
- Base rate entity eligibility check (turnover and passive income tests)
- After-tax profit calculation
- Franking credits available and maximum fully franked dividend
- Dividend franking breakdown with grossed-up amounts
What does this calculator not include?
- Prior year tax losses carried forward
- Research and development (R&D) tax incentive offsets
- Small business tax offset (for sole traders, not companies)
- Franking deficit tax
- International tax (CFC rules, transfer pricing)
- Capital allowances and depreciation calculations
This calculator provides an estimate for planning purposes. Consult a registered tax agent for your company's specific circumstances.
FAQ
What is the company tax rate in Australia for 2025-26?
The company tax rate is 25% for base rate entities (aggregated turnover under $50 million and no more than 80% passive income) or 30% for all other companies. Most small to medium businesses qualify for the 25% rate.
What is a base rate entity?
A base rate entity is a company with aggregated turnover less than $50 million and no more than 80% of its assessable income is base rate entity passive income (such as interest, dividends, rent, royalties, and net capital gains). Base rate entities pay the lower 25% company tax rate.
How do franking credits work?
When a company pays tax on its profits, it generates franking credits equal to the tax paid. These credits can be attached to dividends paid to shareholders. Shareholders include the grossed-up dividend (dividend plus franking credits) in their taxable income and receive a tax offset equal to the franking credits. If the offset exceeds their tax liability, they may receive a refund.
What is the maximum fully franked dividend a company can pay?
The maximum fully franked dividend equals the company's after-tax profit. This is because the franking credits generated (equal to the tax paid) exactly cover the franking requirement for a dividend equal to the after-tax profit. Paying dividends above this amount means some portion must be unfranked.
What counts as base rate entity passive income?
Base rate entity passive income includes: interest income, dividends and franking credits, rent and royalties, net capital gains, and income from partnerships or trusts that is attributable to passive income. It does not include active business income such as sales revenue or fees for services.
What is aggregated turnover?
Aggregated turnover is the total annual turnover of your company plus the turnovers of any entities connected with or affiliated with your company. It is used to determine if your company qualifies as a base rate entity for the lower 25% tax rate. The threshold is $50 million.
Tax Accuracy & Sources
This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.
Uses 2025-26 ATO rates.