Corporate Tax in Australia

Overview by
Tax Base For Resident and Foreign Companies
Resident companies are taxed on all their profits worldwide at a rate of 30%. Non-resident companies are taxed in their country of origin.

Tax Rate

Corporate tax 30%
Fringe Benefit Tax 46.5% on the value of fringe benefits granted to staff
Payroll Tax Between 3.65% and 6.85% of the global company payroll (however, small companies are generally exempted).
Dividends Generally 30%. 5 to 15% for treaty country and depending on the number of shares held.
Tax Rate For Foreign Companies
Dividends paid to non-residents are subject to a deduction at source of 30% (15% in the case of a tax agreement).
Capital Gains Taxation
Capital gains on assets held by an Australian company and long term capital gains are taxed, in principle, when they are realized at the Corporate tax rate, i.e. 30%.
Main Allowable Deductions and Tax Credit
There are tax incentive measures on investment in equipment and investment of capital.
According to the nature and the size of the investment project, the governments of the States can, for a limited period, grant tax aid in the form of tax relief on payroll tax, stamp duty or land tax. For further information, consult the Department of Innovation, Industry, Science and Research website.
Other Corporate Taxes
Stamp duty: all the Australian States and Territories subject certain transactions to Stamp Duty at rates which vary according to the transaction.
Land tax is collected by each State on the non-revalued value of land, at progressive rates.
Payroll tax is collected from employers. This tax is specific to each State, and its rates and conditions of payability vary according to the State. Payrolls under a certain threshold are exempted (in the State of New South Wales AUD 500,000 ).

Country Comparison For Corporate Taxation

  Australia OECD United States Germany
Number of Payments of Taxes per Year 11.0 14.2 11.0 16.0
Time Taken For Administrative Formalities (Hours) 109.0 199.3 187.0 215.0
Total Share of Taxes (% of Profit) 47.9 43.0 46.8 48.2

Source: Doing Business

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

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