Company tax is charged at a rate of 30% and applies to companies, as well as a range of other business entities.
The following business entities also have the company tax rate applied to all or part of their taxable income:
- non-profit companies
- certain credit unions
- registered organisations - eg a non-profit friendly society
- life insurance companies that are not mutual life insurance companies
- companies that are retirement savings account providers
- companies that became a Pooled Development Fund during the year of income and still are at the end of the year of income
- trustees of corporate unit trusts and public trading trusts
- trustees who are liable to be assessed and pay tax on behalf of a non-resident corporate beneficiary.
How you pay your company tax
Companies pay instalments towards their expected end-of-year income tax liability through the pay as you go (PAYG) system.
A company's actual tax liability is worked out when its annual income tax return is assessed.
A company's PAYG instalments for the year are credited against its assessment to determine whether it owes more tax or is owed a refund.
Seek the advice of your accountant when working out your PAYG and when lodging your company income tax return.
More information
On this website
Pay as you go instalments
Other websites
Company tax rates- Australian Taxation Office
Tax basics for small business - Australian Taxation Office
Gateway to online tax services for businesses- ATO Business Portal