Company Tax Calculator

Figuring out how to calculate your company tax can be a confusing process.

Without a clear understanding of tax liabilities, business owners may find themselves facing financial uncertainties and potential issues with non-compliance.

To make this process easier, our team at Taxopia have designed a software tool that allows business owners to calculate their tax obligations with ease.

By plugging in your business income and deductions information, our calculator does the hard work of determining your tax obligations.

Taxopia Company & Personal Tax Calculator

Company Tax Estimator

Estimate your company’s tax payable using current and historic rates. Includes allowances for offsets and prior year losses. Select a tax year and enter financial figures to get started.

Personal Tax Calculator

Estimate your individual tax for any financial year from 2013–2025. Input your gross income, deductions, and tax withheld to see your estimated tax payable or refund.

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The results of your estimated tax obligation are based on the information you provide at the time of calculation.

We recommend using this estimate as a source of guidance as you approach tax time. The final amount will be calculated upon lodgement of your business tax return.

For greater accuracy and potential tax-saving opportunities professional advice and assistance from a tax agent is advised.

How does company tax work?

In Australia, the amount of company tax an owner has to pay is calculated on their company’s taxable income. Company tax rates are currently set at 30%, however, smaller companies may be eligible for a concession tax rate of 25%. Companies are required to make quarterly payments through the Pay As You Go (PAYG) system and file a yearly tax return.

What if I'm a sole trader?

A sole trader is required to pay tax on their business income. Rather than paying at the company rate (30% or 25%) the individual pays at the progressive tax rate. This means that owners who earn a high income will pay a higher percentage of tax on their income than lower earners. A sole trader is expected to file their tax return annually.

What Is The Company Tax Rate?

In Australia, the company tax rate is set at 30% for most companies, but small businesses with an aggregated turnover of less than $50 million and earning no more than 80% of income from passive sources qualify for a rate of 25%.

How Do I Calculate My Company's Tax Rate?

Calculating your company’s tax in Australia involves determining your taxable income and applying the relevant tax rate.

Follow our step-by-step guide:

Calculate Taxable Income: Subtract allowable deductions from your company’s total income. This includes expenses directly related to earning income, such as operating costs, salaries, and depreciation.
Determine the Company Tax Rate: For larger companies the tax rate is 30%, small businesses with an aggregated turnover of less than $50 million may be eligible for a lower rate of 25%.
Apply the Tax Rate: Multiply your taxable income by the applicable tax rate. This gives you the amount of tax your company is liable to pay.
Example Calculation:
- Assume your company’s taxable income is $200,000.
- If the tax rate is 25%, multiply $200,000 by 25% (0.25) to get $50,000.
- Your company’s tax liability would be $50,000.
Finalise Your Tax Return: Include this tax liability in your company’s tax return, along with any other required information, and lodge it with the Australian Taxation Office (ATO).

We advise seeking professional advice or using tax software to ensure accuracy and compliance with Australian tax laws.

What to include

Your business assessable income must include:

All gross income (before tax) from your everyday business activities including: income from sales (cash, electronic, and internet), foreign income.
All other business income that is not part of your everyday business activities including: cash prizes, capital gains, changes in trading value of stock, cryptocurrencies etc.
Note: Gross income does not include goods and services tax (GST).

What NOT to Include

Some amounts or payments you receive are not classified as assessable income, you do not need to include them in your tax return.

Examples of these include GST you have collected, money you have borrowed or contributed as the owner, earnings from a hobby, gifts or inheritance.

How Do I Actually Claim My Return? Do I Need A Tax Agent?

Claiming your company tax return can be done with or without a tax agent. As a business owner you are required to lodge a tax return annually with the Australian Tax Office (ATO). While it is possible to lodge the return yourself, it is advised to use a tax agent in order to ensure accuracy and compliance with Australian tax standards. Additionally, a tax agent can take valuable time off your hands while also making sure you have the best chance at maximising your tax benefits.

How do I get a better return for my company?

To get a better return for your company, consider these strategies:

Capitalise on tax deductions and credits
Strategically plan your investments and expenses
Maintain accurate and up-to-date financial records
Seek professional tax advice prior to the end of financial year to optimise your tax position

FAQs about Company Tax Returns

When are company tax returns due australia?

Company tax returns are generally due by October 31st each year, unless you are lodging through a tax agent, in which case the due date may be later. Visit the ATO website for more information.

Can I Lodge My Company Tax Return Myself?

Yes, you can lodge your company tax return yourself using the ATO’s online services. The myTax portal on the ATO website is a free to use service that will generally finalise tax refunds within two weeks.

Do Dormant Companies Need To File Tax Returns?

Yes, dormant companies are required to lodge a company tax return if they are registered with the Australian Securities and Investments Commission (ASIC).

How To Calculate Total Debt In Company Tax Return?

To calculate total debt in your company tax return, you should calculate the sum of all financial loans and other borrowing arrangements that assisted in the provision of funds for business operation.

What Is Company Tax Planning?

Company tax planning involves strategically managing your company’s finances to minimise tax liabilities and maximise benefits. Planning involves analysing your company’s financial position, identifying tax-saving opportunities, and implementing strategies to optimise your tax position.

Need advice or help tax planning? Reach out today.

For expert advice on company tax planning, tax returns, or any other tax-related queries, contact Taxopia. Our team of tax professionals are dedicated to helping you navigate the complexities of the Australian tax system and maximise your tax benefits. We offer personalised guidance and support tailored to your business needs.

To find out more information, chat with our Live Support Team or fill out an enquiry form on the top-right corner of our website.