Australia Corporate Income Tax
Detailed corporate income tax rates and rules for Australia in 2026.
Australia's standard corporate tax rate is 30% for companies that do not qualify as base rate entities. A reduced rate of 25% applies to base rate entities, which are companies with an aggregated turnover of less than AUD 50 million and no more than 80% of their assessable income derived from base rate entity passive income. The corporate tax system is integrated with the dividend imputation system, which allows shareholders to receive franking credits for tax already paid at the corporate level, effectively eliminating double taxation on distributed profits.
Standard Rate
30%
Small Business Rate
25%
Additional Notes
Australia offers various tax incentives including the Research and Development (R&D) Tax Incentive, which provides a refundable tax offset of 43.5% for eligible entities with aggregated turnover under AUD 20 million, and a non-refundable offset of 38.5% for larger entities. Instant asset write-off provisions allow eligible businesses to immediately deduct the cost of qualifying assets. Australia also operates a controlled foreign company (CFC) regime and transfer pricing rules aligned with OECD guidelines.
How Australia Corporate Tax compares
Australia’s corporate tax rate of 30% is the 16th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Oceania’s regional average of 16.8%.
