About the Australia Company Tax Calculator
This Australia company tax calculator works out the income tax a company pays for the 2026–27 income year (the rates and tests are unchanged from 2025–26 under the Income Tax Rates Act 1986 as compiled at 1 July 2026) and the franking credits it can attach to dividends. Enter taxable income, aggregated turnover and the share of assessable income that is passive, and it decides whether the company is a base rate entity taxed at 25% or pays the full 30% rate.
It is aimed at small business owners, directors of family companies, bookkeepers and accountants estimating a tax bill or planning a dividend. The franking section shows the maximum franking credit for a dividend at your franking percentage, the grossed-up amount the shareholder includes in assessable income, and how much after-tax profit is left.
Rates and tests follow the ATO: a company is a base rate entity if its aggregated turnover is less than $50 million and no more than 80% of its assessable income is base rate entity passive income (portfolio dividends and their franking credits, interest, rent, royalties, net capital gains and similar). The maximum franking rate uses the corporate tax rate for imputation purposes, which is normally worked out from the prior year’s figures — you can set it separately. Not-for-profit companies, credit unions, life insurers and pooled development funds have special rates not covered here.
With the default inputs, the company tax payable is A$100,000.00. Change any value above to recalculate instantly.
How to use the australia company tax calculator
- 1Enter the company’s taxable income for the income year.
- 2Enter aggregated turnover, including connected entities and affiliates.
- 3Enter the percentage of assessable income that is passive (interest, rent, dividends, capital gains).
- 4Add the cash dividend you plan to pay and its franking percentage.
- 5Choose the imputation rate if it differs from this year’s tax rate, then review tax and franking credits.
Formula and method
A company is a base rate entity for an income year when its aggregated turnover for that year is less than $50 million and 80% or less of its assessable income is base rate entity passive income. Base rate entities pay 25% from the 2021–22 income year onwards; all other companies pay 30%. Company tax is a flat rate on every dollar of taxable income — there is no tax-free threshold.
When the company pays a franked dividend, the franking credit passes on the tax already paid. The maximum credit is the dividend × r ÷ (1 − r), where r is the corporate tax rate for imputation purposes: 25% gives one-third of the cash dividend, 30% gives 3/7. Partly franked dividends scale the credit by the franking percentage. Shareholders include the grossed-up amount in assessable income and claim the credit as a tax offset.
- r
- Corporate tax rate for imputation purposes (25% or 30%)
- Aggregated turnover
- Ordinary income from business of the company and its connected entities and affiliates
- Passive income
- Base rate entity passive income as a share of assessable income
Worked examples
Trading company — base rate entity
Turnover of $2.5 million is under $50 million and only 5% of income is passive, so the company is a base rate entity: $400,000 × 25% = $100,000 tax. A fully franked $150,000 dividend carries $150,000 × 0.25 ÷ 0.75 = $50,000 of franking credits, grossing up to $200,000.
Large company at 30%
Aggregated turnover of $60 million is above the threshold, so the full 30% rate applies: $1.5 million tax on $5 million. A fully franked $700,000 dividend carries $700,000 × 0.3 ÷ 0.7 = $300,000 of credits.
Investment company with mostly passive income
Even though turnover is small, 90% of assessable income is passive, so the company is not a base rate entity and pays 30%: $60,000. A 50% franked $70,000 dividend carries $70,000 × 50% × 3/7 = $15,000 of credits.
Frequently asked questions
What is the company tax rate in Australia for 2026–27?+
Base rate entities pay 25% and all other companies pay 30% for the 2026–27 income year, the same as 2025–26. The 25% rate has applied to base rate entities since 2021–22 and is set by section 23 of the Income Tax Rates Act 1986.
What is a base rate entity?+
A company is a base rate entity for an income year if its aggregated turnover for that year is less than $50 million and 80% or less of its assessable income is base rate entity passive income, such as portfolio dividends and their franking credits, interest, rent, royalties and net capital gains. Non-portfolio dividends (from a holding of 10% or more) do not count as passive.
How do I calculate franking credits?+
Multiply the cash dividend by the franking percentage and by r ÷ (1 − r), where r is the company’s tax rate for imputation purposes. At 30% a $700 fully franked dividend carries $300 of credits; at 25% a $750 dividend carries $250.
Why can my franking rate differ from my tax rate?+
The maximum franking rate uses the corporate tax rate for imputation purposes, which is generally based on the previous income year’s aggregated turnover and passive income. A company whose turnover crossed $50 million this year may still frank at 25% this year.
Do companies get a tax-free threshold?+
No. Unlike individuals, companies pay tax at a flat rate from the first dollar of taxable income. Only not-for-profit companies have a low-income concession that exempts small amounts of taxable income.
What counts toward aggregated turnover?+
Aggregated turnover is the annual turnover of the company plus that of any entities connected with it or affiliated with it, excluding GST and amounts from dealings between those entities. Ordinary income such as sales and interest is included.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.