Access your income statement
You will receive either an income statement via myGov or a payment summary from your employer depending on how
There are changes to the company tax rates. The full company tax rate is 30% and the lower company tax rate is 27.5%. The following shows when to apply the lower rate and how to work out franking credits.
Company tax rates apply to:
The full company tax rate of 30% applies to all companies that are not eligible for the lower company tax rate. Eligibility for the lower company tax rate depends on whether you are a:
From the 2017–18 income year, companies that are base rate entities must apply the lower 27.5% company tax rate.
A base rate entity is a company that both:
Base rate entity passive income is:
You need to be a small business entity to be eligible for the lower company tax rate in the 2015–16 and 2016–17 income years.
For the 2016–17 income year, the lower company tax rate is 27.5%. This lower rate applies to small businesses that both:
For the 2015–16 income year, the lower company tax rate was 28.5% for small business entities with an aggregated turnover less than $2 million, and carrying on a business for all or part of the year.
From the 2017–18 income year, you need to be a base rate entity, rather than a small business entity to be eligible for the lower tax rate.
From the 2017–18 income year, to work out the company tax rate for franking your distributions, otherwise referred to as ‘corporate tax rate for imputation purposes’, you need to assume your aggregated turnover, assessable income, and base rate entity passive income will be the same as the previous income year.
For the 2017–18 income year, your corporate tax rate for imputation purposes is 27.5% if either:
Otherwise, your corporate tax rate for imputation purposes is 30%.
For further information on how Griffin & Associates can assist with your taxation requirements, please click here.
Source: Australian Taxation Office
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