There are changes to company tax rates. While the full company tax rate is 30%, your company may be eligible for a lower company rate.

If you are a ‘base rate entity’, your company tax rate is:

  • 27.5% from the 2017–18 to 2019–20 income years
  • 26% for the 2020–21 income year
  • 25% from the 2021–22 income year onwards.

For your company to be a ‘base rate entity’, it needs to meet the following eligibility criteria:

  • aggregated turnover of less than $25 million for the 2017–18 income year or $50 million from the 2018–19 income year onwards, and
  • if your company earns passive income, it cannot exceed 80% of the company’s assessable income, which can include:
    • corporate distributions and franking credits on these distributions
    • royalties and rent
    • interest income
    • gains on qualifying securities
    • a net capital gain.     

Source – https://www.ato.gov.au/Newsroom/smallbusiness/General/The-lower-company-tax-rate-is-changing-soon/