Company tax calculator Australia
Find the 25% or 30% company tax rate from assessable and BRE passive income amounts, estimate current company tax, then test whether fully franking a dividend would put the entered franking account into deficit.
Based on ATO company tax and imputation guidance. Assumes an Australian resident company subject to the general 25% or 30% rates and excludes tax offsets, prior losses and special company rates.
Choose the income year for the company tax estimate.
Company tax-return taxable income. Enter a tax loss as a negative amount.
Total assessable income before deductions—not taxable income or accounting revenue.
Annual turnover plus affiliates and connected entities. Must be under $50M for the 25% rate.
Interest, relevant dividends and credits, rent, royalties, net capital gains and traceable passive amounts. The calculator derives the percentage.
Cash dividend you want to test against the franking account.
Use the actual credit balance immediately before the dividend—not this year's estimated tax.
Defaults to 30%. The statutory imputation rate uses assumed prior-year turnover, assessable income and BRE passive income; a new company also defaults to the general rate.
Next best steps
Enter company details to calculate tax
Business calculators: Franking credits calculator, Trust distribution tax calculator, BAS calculator, Division 7A calculator, Sole trader tax calculator
Company tax rates in Australia
Australia has a 25% rate for base rate entities and a general 30% rate for other companies. The BRE test uses aggregated turnover for the income year and compares BRE passive income with assessable income—not taxable income, accounting profit or revenue.
| 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:
1. Aggregated turnover is less than $50 million, AND
2. 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?
— Interest income
— Dividends and franking credits
— Rent and royalties
— Net capital gains
— Income from partnerships or trusts attributable to passive sources
Active business income such as ordinary sales and service fees is generally outside the statutory BRE passive categories. Classification can be complex where income flows through a trust or partnership.
How franking credits work
A franking account operates on a tax-paid basis. Credits generally arise when the company pays income tax or PAYG instalments—not when this calculator merely estimates a liability. The entered balance is therefore kept separate from estimated company tax.
Potential credit when estimated tax is paid = Estimated company tax before offsets
Maximum credit per $1 dividend = Imputation rate ÷ (1 − imputation rate)
At 25%: $0.3333 franking credit per $1 dividend
At 30%: $0.4286 franking credit per $1 dividend
The corporate tax rate for imputation purposes can differ from the current company tax rate. Broadly, it uses assumptions based on the previous income year's aggregated turnover, assessable income and BRE passive income; a company that did not exist in the previous year uses the general rate. The calculator therefore defaults this separate input to 30%.
Worked example: tax estimate plus a separate franking balance
Company tax: $500,000 × 25% = $125,000
After-tax profit: $500,000 − $125,000 = $375,000
Actual franking account balance entered: $50,000
Fully franked dividend capacity at 25%: $50,000 × 75/25 = $150,000
A $200,000 dividend would need $66,666.67 to be fully franked at 25%. With a $50,000 balance, full franking would show an indicative $16,666.67 deficit immediately after the dividend. Later account credits may change the year-end position.
Classification check: If the company is near either BRE boundary, confirm aggregated turnover for affiliates and connected entities and classify BRE passive income carefully. For dividend planning, confirm the prior-year facts used for the corporate tax rate for imputation purposes and the benchmark franking percentage.
25% vs 30% company tax rate
The difference between the two rates changes estimated company tax. It does not, by itself, establish the company's current franking account balance:
| 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 this calculator includes
— Company tax at 25% (BRE) or 30% (full rate) for 2025-26 and 2026-27
— Amount-based base rate entity eligibility check
— Taxable income less estimated tax
— Tax-loss input with zero current tax estimate
— Full-franking scenario using an entered account balance and imputation rate
What this calculator does not include
— Prior-year loss availability and carry-forward tests
— R&D and other tax offsets
— Accounting profit or distributable profits
— Final franking deficit tax or over-franking tax
— Benchmark franking percentage and available-profits rules
— International tax, capital allowances and depreciation
This calculator provides an estimate for planning purposes. Consult a registered tax agent for your company's specific circumstances.
What is the company tax rate in Australia for 2026-27?
What is a base rate entity?
How do franking credits work?
How is the fully franked dividend capacity estimated?
What counts as base rate entity passive income?
What is aggregated turnover?
Tax Accuracy & Sources
Calculates company tax at 25% or 30% from entered taxable income, assessable income, BRE passive income and aggregated turnover. The dividend section is a full-franking scenario against an entered tax-paid account balance; it does not determine an actual allocation or final FDT liability. Tax offsets, prior-year loss use, benchmark franking, available profits, special company rates and international rules are outside scope.