The ATO has updated its company tax rate guidance for the 2025–26 income year, setting rates at 25% for base rate entities and 30% for other companies. The revised guidance covers specific rates for life insurance companies, pooled development funds, credit unions with tiered thresholds at AUD 50,000 and AUD 150,000, and not-for-profit companies with tax-free income up to AUD 416.
The Australian Taxation Office (ATO) has revised its guidance on company tax rates, providing an updated overview of the applicable rates for the 2025–26 income year, as outlined below:
Companies
| Income category | Rate (%) |
| Base rate entities | 25 |
| Otherwise | 30 |
This includes corporate limited partnerships, strata title bodies corporate, trustees of corporate unit trusts and public trading trusts.
Life insurance companies
2025–26 tax rates – Life insurance companies
| Income category | Rate (%) |
| Ordinary class of taxable income | 30 |
| Complying superannuation class of taxable income | 15 |
| Additional tax on no-tax file number (TFN) contributions income where the company is a retirement savings account (RSA) provider | 32 |
RSA providers other than life insurance providers
2025–26 tax rates – RSA providers other than life insurance providers
| Income category | Rate (%) |
| RSA component of taxable income | 15 |
| Additional tax on no-TFN contributions income | 32 |
| Standard component of taxable income: Base rate entity | 25 |
| Standard component of taxable income: Otherwise | 30 |
Pooled development funds
2025–26 tax rates – Pooled development funds (PDFs)
| Income category | Rate (%) |
| Small and medium sized enterprises income component | 15 |
| Unregulated investment component | 25 |
| The amount that exceeds the PDF component: Base rate entity | 25 |
| The amount that exceeds the PDF component: Otherwise | 30 |
Credit unions
2025–26 tax rates – Credit unions
| Income category | Rate (%) |
| Small credit unions – under AUD 50,000: Base rate entities | 25 |
| Small credit unions – under AUD 50,000: Otherwise | 30 |
| Medium credit unions – AUD 50,000 to AUD 149,999: Base rate entities | 37.5 |
| Medium credit unions – AUD 50,000 to AUD 149,999: Otherwise | 45 |
| Large credit unions – AUD 150,000 and over: Base rate entities | 25 |
| Large credit unions – AUD 150,000 and over: Otherwise | 30 |
Small credit unions are taxed on all their taxable income but note the treatment of mutual interest. Interest derived by small credit unions is exempt from tax if both:
- the credit union is an approved credit union
- the interest is paid to the credit union by its non-company members in respect of loans it made to those members.
Credit unions with a notional taxable income of at least AUD 50,000 but less than AUD 150,000 are taxed on their taxable income above AUD 49,999. Credit unions with a notional taxable income of AUD 150,000 or more are taxed on all their taxable income. A credit union’s notional taxable income is defined in subsection 6H(5) of the Income Tax Assessment Act 1936 (ITAA 1936).
Not-for-profit companies
2025–26 tax rates – Not-for-profit companies
| Income category | Rate (%) |
| Taxable income: AUD 0–AUD 416 | Nil |
| Taxable income: AUD 417–AUD 915 | 55 |
| Taxable income: AUD 916 and above | 30 |
Note 4: Not-for-profit companies with a taxable income of between AUD 417 and AUD 915 are taxed on their taxable income above AUD 416. Not-for-profit companies with a taxable income above AUD 915 are taxed on all their taxable income.
Not-for-profit companies that are base rate entities
2025–26 tax rates – Not-for-profit companies that are base rate entities
| Income category | Rate (%) |
| Taxable income: AUD 0–AUD 416 | Nil |
| Taxable income: AUD 417–AUD 762 | 55 |
| Taxable income: AUD 763 and above | 25 |
For the 2025–26 income year, not-for-profit companies that are base rate entities with a taxable income of between AUD 417 and AUD 762 are taxed on their taxable income above AUD 416.
