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  • Company tax rates

    Tax rates 2017–18

    The following rates of tax apply to companies for the 2017–18 income year.

    Companies

    2017–18 tax rates – Companies (see note 1)

    Income category

    Rate (%)

    Base rate entities

    27.5

    Otherwise

    30

    Note 1: This includes corporate limited partnerships, strata title bodies corporate, trustees of corporate unit trusts and public trading trusts.

    Life insurance companies

    2017–18 tax rates – Life insurance companies

    Income category

    Rate (%)

    Ordinary class of taxable income

    30

    Complying superannuation class of taxable income

    15

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

    32

    RSA providers other than life insurance providers

    2017–18 tax rates – RSA providers other than life insurance providers

    Income category

    Rate (%)

    RSA component of taxable income

    15

    Additional tax on no-TFN contributions income

    32

    Standard component of taxable income:

    • Base rate entity
    • Otherwise
     

     

    27.5

    30

    Pooled development funds

    2017–18 tax rates – Pooled development funds (PDFs) (see note 2)

    Income category

    Rate (%)

    Small and medium sized enterprises income component  

    15

    Unregulated investment component  

    25

    The amount that exceeds the PDF component:

    • Base rate entity
    • Otherwise
     

     

    27.5

    30

    Note 2: 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.

    Credit unions

    2017–18 tax rates – Credit unions (see note 3)

    Income category

    Rate (%)

    Small credit unions – under $50,000: Base rate entities

    27.5

    Small credit unions – under $50,000: Otherwise

    30

    Medium credit unions – $50,000 to $149,999: Base rate entities

    41.25

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

    45

    Large credit unions – $150,000 and over: Base rate entities

    27.5

    Large credit unions – $150,000 and over: Otherwise

    30

    Note 3: 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.

    Not-for-profit companies

    2017–18 tax rates – Not-for-profit companies (see note 4)

    Income category

    Rate (%)

    Taxable income: $0–$416

    Nil

    Taxable income: $417–$915

    55

    Taxable income: $916 and above

    30

    Note 4: Not-for-profit companies with a taxable income of between $417 and $915 are taxed on their taxable income above $416. Not-for-profit companies with a taxable income above $915 are taxed on all of their taxable income.

    Not-for-profit companies that are base rate entities

    2017–18 tax rates – Not-for-profit companies that are base rate entities (see note 5)

    Income category

    Rate (%)

    Taxable income: $0–$416

    Nil

    Taxable income: $417–$831

    55

    Taxable income: $832 and above

    27.5

    Note 5: From the 2017-18 income year, not-for-profit companies that are base rate 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.

    Last modified: 12 Dec 2017QC 17534