Model taxable company profit and the applicable rate
This tool estimates FY2026–27 Australian company tax from assessable income and allowable deductions. It also tests the supplied turnover and passive-income information against the calculator’s base rate entity conditions, helping you see why the 25% or standard 30% rate is used.
A company’s taxable income and accounting profit can differ, and group relationships can affect aggregated turnover. Timing differences and prior-year losses may also matter outside this model. Treat the calculation as a simple scenario for a company, not a determination of company residency, deductions, imputation credits or the tax consequences for shareholders.
How to read the results
Estimated company tax is calculated on assessable income less allowable deductions, with taxable income not falling below zero. Applicable company rate states whether the model has applied 25% as a base rate entity or the 30% standard rate.
After-tax profit is taxable income less estimated company tax. Estimated refund or amount owing compares that tax with PAYG instalments already paid; it does not represent a dividend amount, franking credit balance or shareholder tax outcome.
Worked example
With $850,000 assessable income, $650,000 allowable deductions, $850,000 aggregated turnover and $20,000 passive income, the default taxable income is $200,000. The inputs satisfy this calculator’s base rate entity test.
At the displayed 25% rate, estimated company tax is $50,000 and after-tax profit is $150,000. With $40,000 PAYG instalments entered, the result shows an estimated amount owing of $10,000.
Assumptions and limitations
- Assessable income and allowable deductions are entered accurately for the company.
- Taxable income is limited to zero when deductions exceed assessable income.
- The 25% rate is used only where aggregated turnover is under $50 million and passive income is no more than 80% of assessable income.
- Connected and affiliated entities may need to be included in aggregated turnover.
- Losses, offsets, franking accounts, R&D concessions and shareholder tax are excluded.
Frequently asked questions
Does the 25% result confirm base rate entity status?
No. It applies the calculator’s simplified turnover and passive-income test and is not an eligibility determination.
What is passive income in this calculator?
It can include items such as dividends, interest, rent, royalties and net capital gains, as indicated beside the input.
Is after-tax profit available to distribute?
Not necessarily. The figure is taxable income after company tax and does not account for cash flow, liabilities or distribution rules.
This calculator and supporting information provide general estimates only. They do not take account of every product rule, tax consequence or personal circumstance and are not financial, tax, credit or legal advice.