25% base rate entity 30% otherwise
Company Tax Rates
Australian companies pay 25% if they are a base rate entity and 30% if they are not. The whole question is which one you are - and it turns on turnover and where your income comes from.
The rates
| Income category | Rate |
|---|---|
| Standard component of taxable income - base rate entity | 25% |
| Standard component of taxable income - otherwise | 30% |
These are the rates published by the ATO for 2024-25. The same two rates appear in its rate tables for the earlier years in that series.
What makes a company a base rate entity
Two conditions, and both have to be met:
- Aggregated turnover below the threshold set for the income year.
- No more than 80% of assessable income being base rate entity passive income - interest, dividends, rent, royalties and similar.
The second test is the one that surprises people. A company that is small but lives entirely on rent and dividends is not a base rate entity, and pays 30%.
What we are not quoting
The turnover threshold for the base rate entity test depends on the income year, and the ATO's own company tax rate pages are published per year. Rather than state a threshold that may have moved, this page quotes only the two rates, which are unambiguous.
Company tax is also affected by things this page cannot cover - franking, the R&D offset and other concessions all sit on top of the headline rate. If you run a company, the headline rate is the starting point, not the answer.
Frequently asked questions
What is the company tax rate in Australia?
25% for a base rate entity and 30% for every other company, from the ATO's published rate table.
What is a base rate entity?
A company with aggregated turnover under the threshold and no more than 80% of its assessable income from base rate entity passive income. Both tests must be satisfied.
Does a small company always get 25%?
No. The passive income test is separate from size. A small company whose income is mostly rent, interest or dividends fails the 80% test and pays 30%.
Is that the rate on all profits?
It is the rate applied to the company's taxable income - after deductions, not on revenue. And it is the company's own tax: when profits are distributed, franking credits pass the company tax through to shareholders.
How does it interact with personal tax?
Through franking. The company pays tax, then attaches franking credits to the dividend, and the shareholder gets a credit for the tax already paid. For a shareholder on a lower marginal rate that credit can be refundable.
From the Australian Taxation Office, checked 12 October 2026. General information only - not tax advice.