Company tax rate: 25% or 30%

What is the base rate entity test?

Two parts, both tested for the income year: aggregated turnover under $50 million (ATO - Company tax rate changes), and base rate entity passive income no more than 80% of assessable income (ATO - Company tax rate changes). Test both limbs for each income year; aggregated turnover includes connected entities and affiliates, and BRE status must never be inferred from the standalone ledger (ATO - LCR 2019/5).

Why can the books alone not answer it?

Aggregated turnover includes connected entities and affiliates, and whether an income line counts as passive depends on facts your accounting software does not record. A company comfortably under the limit on its own books can be over it as a group.

When is the company return due?

The ATO lists 28 February following the income year as the income tax return lodgment due date for "self-preparing taxpayers that were not due at an earlier date". Earlier dates apply in some cases, such as 31 October where a prior-year return was not lodged on time. The due date the ATO records for the entity takes precedence. This is the lodgment date; it does not say when the tax is paid. (ATO – Due dates by topic: income tax). For the 2026–27 income year, that is 28 February 2028 for a company that lodges its own return. Companies lodging through a registered tax agent follow the agent lodgment program (ATO – Due dates for tax returns by client type: companies and super funds).

What does Nella show?

Nella applies the company tax rate only once the base rate entity result is supplied by you or your registered agent; it never assumes the lower rate. It keeps the company return and payment dates in view. It does not prepare or lodge returns.

Nella provides financial information and education, not accounting or tax advice. Facts for 2026–27 income year, taken from the sources linked on this page. Created by the accountants at AccTek Ltd — an ICPA and AIA member firm.