• Company tax rates

    Tax rates 2016–17

    The following rates of tax apply to companies for the 2016–17 income year.

    Companies

    Rate %

    This includes corporate limited partnerships, strata title bodies corporate, trustees of corporate unit trusts and public trading trusts.

     

     

     

    27.5

    30

    Life insurance companies

    • Ordinary class of taxable income

     

    30

    • Complying super class of taxable income

     

    15

    • Additional tax on no-TFN contributions income where the company is a retirement savings account (RSA) provider

     

    34

    RSA providers other than life insurance companies

    • RSA component of taxable income

     

    15

    • Additional tax on no-TFN contributions income

     

    34

    • Standard component of taxable income
     

    Rate applicable to institution

    Pooled development funds (PDFs)

    For tax rates where a company either starts or ceases to be a PDF during the income year, refer to Appendix 4 of the Company tax return instructions.

    • Small and medium sized enterprises income component

     

    15

    • Unregulated investment component

     

    25

    • Other

     

    30

    Credit unions

    Small credit unions – under $50,000

    • Small business entities
    • Otherwise

     

     

    27.5

    30

    Medium credit unions – $50,000 to $149,999

    • Small business entities
    • Otherwise

     

     

    41.25

    45

    Large credit unions – $150,000 and over

    • Small business entities
    • Otherwise

     

     

    27.5

    30

    Small credit unions are taxed on all their taxable income, but note the treatment of mutual interest.

    Interest derived by small credit unions is exempt from tax if:

    • the credit union is an approved credit union, and
    • the interest is paid to the credit union by its non-company members in respect of loans it made to those members.

    Credit unions with a notional taxable income of at least $50,000 but less than $150,000 are taxed on their taxable income above $49,999.

    Credit unions with a notional taxable income of $150,000 or more are taxed on all of their taxable income.

    A credit union's notional taxable income is defined in subsection 6H(5) of ITAA 1936.

    Non-profit companies

    Non-profit companies with a taxable income of between $417 and $915 are taxed on their taxable income above $416.

    Non-profit companies with a taxable income above $915 are taxed on all of their taxable income.

    Taxable income

    $0–$416

    $417–$915

    $916 and above

     

    Nil

    55

    30

    Non-profit companies that are small business entities

    For income years beginning on or after 1 July 2015, non-profit companies that are small business entities with a taxable income of between $417 and $831 are taxed on their taxable income above $416.

    If their taxable income is above $831, they will be taxed on all of their taxable income.

    Taxable income

    $0–$416

    $417–$831

    $832 and above

     

    Nil

    55

    27.5

    Last modified: 22 May 2017QC 17534