Company Tax Calculator: Australia
Companies in Australia pay company tax (also called corporate tax) on their taxable income. The tax rate depends on whether the company qualifies as a Base Rate Entity (BRE). Use this calculator to estimate your company tax bill and understand the impact of franking credits when distributing dividends to shareholders.
FAQ
Q1: What is the company tax rate for 2025-26?
For FY 2025-26, the company tax rate is 30% for base rate entities (BRE) and larger companies. Previously, small companies had a 27.5% rate, but this increased to 30% from 2024-25. A BRE is a company withaggregated turnover less than $50 million and no more than 80% of its income is passive income (e.g., interest, dividends, rent).
Q2: What are franking credits?
When an Australian company pays tax on its profits and distributes dividends to shareholders, it can "frank" those dividends. Franking credits represent the tax already paid by the company. Shareholders receiving franked dividends get a tax offset for the franking credits, avoiding double taxation. If the shareholder's marginal tax rate is higher than the corporate rate, they pay additional tax; if lower, they may get a refund of excess franking credits.
Q3: Do companies need to pay quarterly instalments?
Yes, companies generally pay PAYG instalments quarterly based on expected tax liability. The ATO will notify your instalment rate and amount. Instalments are based on either your actual income or an estimated rate. At the end of the income year, you lodge your company tax return and reconcile instalments.
Important: This calculator provides estimates. Actual tax liabilities may vary based on deductions, offsets, and specific company circumstances. For comprehensive tax planning, consult a registered tax agent or accountant.