Tool

Business Tax Calculator

Free Australian business tax calculator. Estimate company tax for FY2025-26 using current ATO rates: 25% for base rate entities, 30% for others.

Estimate your company tax

Taxable income ($)

Entity type

25% tax rate

$125,000 estimated tax

$375,000 after-tax income

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Australian company tax rates (FY2025-26)

The ATO applies two company tax rates depending on entity size and income composition:

Entity type	Tax rate	Criteria
Base rate entity	25%	Aggregated turnover under $50M, and no more than 80% passive income
All other companies	30%	Turnover $50M+ or more than 80% passive income

How to estimate your company tax

The formula is straightforward:

Estimated tax = Taxable income × Tax rate

Taxable income is your total assessable income minus allowable deductions. This calculator provides a simplified estimate. Your actual tax liability may differ based on:

Tax offsets and credits (e.g. R&D tax incentive, franking credits)
Capital gains and losses
Prior year losses carried forward
Small business concessions

Reducing your tax liability

Australian SMEs can reduce taxable income through legitimate deductions:

Instant asset write-off: Businesses with turnover under $10M can immediately deduct the full cost of eligible assets
Prepaid expenses: Prepaying up to 12 months of expenses before 30 June
Superannuation contributions: Employer contributions are deductible
Bad debts: Writing off genuinely unrecoverable debts before year-end
Operating expenses: All ordinary business costs including software subscriptions, travel, and office supplies

Accurate expense tracking throughout the year ensures you capture every deduction.

Frequently asked questions

What is the company tax rate in Australia for 2025-26?

For FY2025-26, the company tax rate is 25% for base rate entities (companies with aggregated turnover less than $50 million that derive no more than 80% of assessable income from base rate entity passive income). All other companies pay 30%.

What is a base rate entity?

A base rate entity is a company that has an aggregated turnover of less than $50 million and no more than 80% of its assessable income is base rate entity passive income (such as interest, dividends, rent, royalties, and net capital gains).

How is company taxable income calculated?

Taxable income is your assessable income minus allowable deductions. Assessable income includes business revenue, capital gains, and other income. Deductions include operating expenses, depreciation, and other costs incurred in earning assessable income.

When is company tax due in Australia?

Company tax returns are generally due by the last day of February following the end of the financial year (30 June). If you use a registered tax agent, you may have an extended lodgement deadline. PAYG instalments are due quarterly throughout the year.

Methodology and disclaimer

This calculator applies the ATO company tax rates for FY2025-26: 25% for base rate entities (aggregated turnover under $50 million with no more than 80% passive income) and 30% for all other companies.

The estimate is a simplified calculation of taxable income multiplied by the applicable rate. It does not account for tax offsets, franking credits, R&D incentives, capital gains concessions, prior year losses carried forward, or small business concessions that may reduce your actual liability.

This tool provides estimates only and does not constitute financial, tax, or legal advice. Always consult a registered tax agent for your specific circumstances. Rates are current as at 1 July 2025.

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