🇦🇺 Corporate Tax in Australia

Headline rate: 25–30%

Proprietary Limited Company (Pty Ltd)

Companies with aggregated turnover below AUD 50 million are classified as base rate entities and taxed at 25%. All other companies are taxed at 30%. Australia operates a dividend imputation (franking) system: when a company pays tax on its profits and distributes dividends, the tax already paid is attached as franking credits. Australian-resident shareholders can use these credits to offset their personal tax liability, effectively eliminating double taxation of corporate profits. There is no general capital gains tax exemption, though a 50% CGT discount applies to assets held for more than 12 months by individuals and trusts. Foreign-sourced income of Australian-resident companies is generally taxable, subject to foreign income tax offset provisions.

Branch Office (Registered Foreign Company) (Branch)

A branch is taxed at the standard 30% corporate tax rate on Australian-sourced income (the base rate entity concession of 25% does not apply to foreign-owned branches). Profits repatriated to the parent are not subject to dividend withholding tax. The branch may benefit from Australia's double tax treaty network if the parent company is resident in a treaty country. Transfer pricing rules apply to transactions between the branch and its parent.

Key Facts

Double tax treaties: 46
Memberships: WTO, APEC, OECD, G20, UN, Five Eyes
Legal system: Common law
Fiscal year: 1 July – 30 June (standard); companies may apply for a substitute accounting period

This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.