Reduction of Corporate Tax Rate

The company tax rate is 30% for entities with aggregated turnover above $50 million or with passive income above 80%.

The company tax rate for entities with aggregated turnover below $50 million is generally as follows:

Franking a dividend however is based on the prior year tax rate.

Although it sounds great, many companies will end up with excess franking credits trapped in the company from when the rates were 30%.

The information in this blog is intended only to provide a general overview and has not been prepared with a view to any particular situation or set of circumstances. It is not intended to be comprehensive nor does it constitute advice. While we attempt to ensure the information is current and accurate we do not guarantee its currency and accuracy. You should seek professional advice before acting or relying on any of the information in this blog as it may not be appropriate for your individual circumstances.

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