Legislation has recently been passed by Government regarding the Company Tax Rates. The standard corporate company tax rate is 30% and for base rate entities is 27.5%.
To quality as a base rate entity a company must have:
An aggregate turnover of $50million ($25million in 2017/2018) and
80% or less of their assessable income is base rate entity passive income (BREPI) – this replaces the requirement to be carrying on a business.
Base rate entity passive income (BREPI) includes:
Corporate distributions and franking credits on these distributions;
Royalties and rent;
Interest income – excluding finance companies;
Gains on qualifying securities;
A net capital Gain
An amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income.