Glossary · 2026–27 income year
What is a base rate entity?
A base rate entity is a company that pays the lower 25% company tax rate rather than 30%. For the 2026–27 income year a company qualifies if its aggregated turnover is below $50 million and no more than 80% of its assessable income is base rate entity passive income, such as interest, rent, dividends and net capital gains.
Nella shows the company tax rate once the base rate entity test result is supplied; it does not decide the test, which depends on the aggregated turnover of connected entities and the character of the income.
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