Australia Company (Pty Ltd) tax calculator 2026

Q: What is the company tax rate for an Australian Pty Ltd in 2026?

A base rate entity pays 25% , while the standard company tax rate is 30% . The 25% rate applies where aggregated turnover is under A$50 million and no more than 80% of income is passive.

Q: What is the turnover threshold for the 25% base rate?

The company must have aggregated turnover below A$50 million and no more than 80% passive income to qualify for the 25% base rate entity rate; above the threshold, the 30% rate applies.

Q: How much company tax on A$400,000 profit?

At the base rate of 25%, a A$400,000 taxable profit gives A$100,000 of company tax. At the standard 30% rate it would be A$120,000 .

Q: How are dividends from a Pty Ltd taxed?

Australia's imputation system attaches franking credits to dividends so profits are not taxed twice. Dividend withholding on the amounts modelled here is 0% , though non-residents should check treaty rules on unfranked dividends.

Q: When does a company pay the 30% rate instead of 25%?

A company pays the standard 30% rate when its aggregated turnover reaches A$50 million or more, or when more than 80% of its income is passive, so it is not a base rate entity.

Built by Luigi R., BizTaxCalc, using official Australia rates. Tax year 2026, updated 5 August 2026.

In brief.

An Australian company (Pty Ltd) pays company tax at 25% if it is a base rate entity with aggregated turnover under A$50 million; otherwise the standard rate is 30%. There is no separate tax on franked dividends thanks to the imputation (franking credit) system, and unfranked dividend withholding here is modelled at 0%.

This calculator estimates the 2026 company tax payable by an Australian proprietary limited company (Pty Ltd) on its taxable profit, applying either the 25% base rate or the 30% standard rate.

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Country

Legal form

Tax year

The year whose rates apply (they change with each Budget Law). Enter that year's revenue.

Revenue / fees for the year (A$)

Activity (ATECO profitability coefficient)

Documented expenses for the year (A$)

Pension fund (contributions)

35% contribution reduction (flat-rate artisans/traders)

Activity category

Activity type (coefficient)

Flat-rate income tax payment (option)

ACRE: 50% contribution cut (1st year)

Start-up: first 5 years (reduced 5% rate)

First year of activity (contributions not yet paid → not deductible)

Pre-tax profit

Distribute profits as dividends

Result

Fill in the data and press “Calculate”.

Australia Company (Pty Ltd) tax rates 2026

Australia Company (Pty Ltd) tax rates 2026 (official rates, national level)
Band or item	Rate
Company tax	25%
Dividend tax (on distribution)	0%

Source: www.ato.gov.au

How is company tax calculated for a Pty Ltd?

An Australian Pty Ltd is taxed as a separate legal entity on its taxable income, which is assessable income less allowable deductions. Unlike individuals, companies do not receive a tax-free threshold: the flat company tax rate applies to the first dollar of profit.

Two rates exist for 2026. A base rate entity pays 25%. To qualify, the company must have aggregated turnover below A$50 million and no more than 80% of its assessable income can be passive (interest, dividends, rent and similar). Any company that fails either test pays the standard 30% rate on all of its taxable income.

Dividends, franking credits and withholding

Australia uses a full dividend imputation system. When the company pays tax on its profit, it generates franking credits. When it later distributes those profits as dividends, it can attach franking credits so that shareholders are not taxed twice on the same income. This calculator models the company-level tax only and does not separately model franking credits.

For dividends paid to residents, no dividend withholding applies. Fully franked dividends paid to non-residents are also generally free of withholding, and here unfranked dividend withholding is modelled at 0%. Foreign shareholders should still check the withholding rules and any treaty that applies to unfranked amounts.

A worked example at 25% and 30%

Suppose a Pty Ltd has assessable income of A$600,000 and deductible expenses of A$200,000, giving a taxable profit of A$400,000.

If the company is a base rate entity (turnover under A$50 million and mostly active income), tax is 25% of A$400,000 = A$100,000, leaving A$300,000 after tax. If the same company does not qualify and the 30% rate applies, tax is 30% of A$400,000 = A$120,000, leaving A$280,000. The A$20,000 difference shows why the base rate entity tests matter. On top of the tax paid, the company records franking credits it can pass to shareholders on later distributions.

Frequently asked questions

What is the company tax rate for an Australian Pty Ltd in 2026?

A base rate entity pays 25%, while the standard company tax rate is 30%. The 25% rate applies where aggregated turnover is under A$50 million and no more than 80% of income is passive.

What is the turnover threshold for the 25% base rate?

The company must have aggregated turnover below A$50 million and no more than 80% passive income to qualify for the 25% base rate entity rate; above the threshold, the 30% rate applies.

How much company tax on A$400,000 profit?

At the base rate of 25%, a A$400,000 taxable profit gives A$100,000 of company tax. At the standard 30% rate it would be A$120,000.

Is there a tax-free threshold for companies in Australia?

No. Unlike individuals, a Pty Ltd has no tax-free threshold, so the 25% or 30% rate applies to the first dollar of taxable profit.

How are dividends from a Pty Ltd taxed?

Australia's imputation system attaches franking credits to dividends so profits are not taxed twice. Dividend withholding on the amounts modelled here is 0%, though non-residents should check treaty rules on unfranked dividends.

When does a company pay the 30% rate instead of 25%?

A company pays the standard 30% rate when its aggregated turnover reaches A$50 million or more, or when more than 80% of its income is passive, so it is not a base rate entity.

Official sources

Australian Taxation Office (ATO) — Corporate & personal income tax