Australian company tax rate applies to small businesses with an aggregated turnover less than $50 million will be reduced to 25% by 2021-22 income year. The lower company tax rate will further reduce small businesses’ tax burden.
Company Tax rate:
| Income year | Aggregated turnover threshold | Tax rate for base rate entities under the threshold | Tax rate for all other companies |
| 2019–20 | $50m | 27.50% | 30.00% |
| 2020–21 | $50m | 26.00% | 30.00% |
| 2021–22 | $50m | 25.00% | 30.00% |
A base rate entity is a company that both:
- has an aggregated turnover less than $50 million
- 80% or less of their assessable income is base rate entity passive income.
Base rate entity passive income is:
- corporate distributions and franking credits on these distributions
- royalties and rent
- interest income (some exceptions apply)
- gains on qualifying securities
- a net capital gain
- an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income.
Take Advantage of our business registration bundles
For a limited time, we will waive our fees for all business registration bundles (third party ASIC fees etc are still required), if you register a new business (Company & Trust) with us and sign up for our monthly accounting package for 12 months.
At Cloud 8 we guarantee to complete all the registration works within 48 hours, provided that all relevant information and documentation are supplied to us in full.
For details about our registration services, please visit: https://www.cloud8.com.au/service/business-registration/
For details about our monthly accounting packages, please visit: https://www.cloud8.com.au/prices/
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