COMPANIES
Companies are a common entity type in Australia for carrying on business. It is a distinct legal entity separate from its shareholders and a limited liability company is a structure in which the members of the company are not personally liable for the company’s debts or liabilities.
The company base Tax rate has dropped to 27.5% for 2018 financial year. This is available for base rate entity which is a company that:
- Has an aggregated turnover of less than $25 million; and
- Is carrying on a business.
Below is a table for the future year company tax rates changes:
| Income year | Aggregated turnover threshold | Tax rate for base rate entities under the threshold | Tax rate for all other companies |
| 2017–18 | $25m | 27.5% | 30.0% |
| 2018–19 to 2023–24 | $50m | 27.5% | 30.0% |
| 2024–25 | $50m | 27.0% | 30.0% |
| 2025–26 | $50m | 26.0% | 30.0% |
| 2026–27 | $50m | 25.0% | 30.0% |
Click here for more information about company tax rate