Tax and Structures

Comparison of all entities

Tax for a company

The tax for Australian companies is a flat 30% on all income, unless it is a small business entity with a business turnover under $50 million and qualifies for the lower company tax rate of 25%.

The company doesn’t receive a discount for any capital gains. In this example the company only conducts investment activities and does not run a business, so tax still applies at 30% (or it would reduce to 25% if it was a small business entity). 

The taxable income for the company is shown in the top table. 

The tax payable by the company in 2023/24 is $21,300, as shown in the second table (or $16,750 for small business entities).

Note: if this money was subsequently paid as a dividend by the company to shareholders, there may be further tax to pay by the shareholders if they have a marginal tax rate higher than the company tax rate.