Company Tax Calculator: Formula, Example and What the Result Means
Calculates company tax at the base rate entity or full company rate. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Company Tax Calculator.
Why it matters
Australian businesses deal with GST at 10%, BAS reporting, PAYG withholding for staff, super guarantee obligations and company or individual tax depending on structure. Getting pricing and margins right is the difference between busy and profitable.
What you need to enter
The calculator asks for 2 inputs. The table shows each one with the example value used later in this guide.
| Input | Example value |
|---|---|
| Taxable profit ($) | 200000 |
| Company tax rate (%) | 25 |
The formula
Tax = taxable profit × rate (25% for base rate entities, 30% otherwise).
Worked example
Entering the example values above gives these results:
| Result | Value |
|---|---|
| Company tax | $50,000.00 |
| Profit after tax | $150,000.00 |
| Franking credits available | $50,000.00 |
The headline figure is $50,000.00 (company tax). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.
How the company tax changes with taxable profit
The table below keeps every other input at the example value and moves only “Taxable profit ($)” up and down by 10% and 20%. It shows how sensitive the company tax is to that one figure.
| Taxable profit ($) | Company tax |
|---|---|
| 160,000 | $40,000.00 |
| 180,000 | $45,000.00 |
| 200,000 | $50,000.00 |
| 220,000 | $55,000.00 |
| 240,000 | $60,000.00 |
At 160,000 the result is $40,000.00; at 240,000 it is $60,000.00. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.
A practical tip
Base rate entities have turnover under $50 million and no more than 80% passive income.
Keep going
Before relying on the number, read Company Tax: What to Check Before You Trust the Number. You might also find these guides useful:
- Using a Sales Commission Calculator in Australia: A Step-by-Step Guide
- Gross-Up Calculator Explained for Australians
- GST Calculator Explained for Australians
Frequently asked questions
- When do I need to register for GST?
- When your annual GST turnover reaches $75,000, or $150,000 for non-profits. Taxi and ride-share drivers must register regardless of turnover.
- What company tax rate applies?
- 25% for base rate entities with turnover under $50 million, and 30% for other companies.
- Should I talk to an accountant?
- Yes, for structure, tax planning and compliance. These calculators give quick estimates only.
Run your own numbers in the Company Tax Calculator.
Open the calculatorGeneral information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.