This post provides a concise overview of the corporate tax system in Australia (AU), presenting up-to-date figures and rules for the 2025 tax year. We focus on statutory rates, tax bands, and recently introduced minimum taxes applicable to multinational businesses, based solely on verifiable data.
Corporate Tax Regime in Australia (2025)
Australia operates a progressive corporate tax system with distinct brackets, relevant surcharges, and specific thresholds for large multinational enterprises. All figures are stated in Australian Dollars (AUD), with USD equivalents provided at a rate of 1 AUD ≈ 0.65 USD.
Corporate Tax Rates and Brackets
| Taxable Income (AUD) | Taxable Income (USD) | Rate (%) |
|---|---|---|
| $0 – $50,000,000 | $0 – $32,500,000 | 25% |
| $50,000,000+ | $32,500,000+ | 30% |
Corporate tax is levied on the company’s taxable income. The lower 25% rate applies to income up to $50 million AUD ($32.5 million USD), while income above this threshold is taxed at 30%. The progressive structure means portions of income falling within each band are taxed accordingly.
Surtaxes for Large Multinationals
From 2024, Australia introduced additional minimum taxes targeting large multinational enterprises. These apply to companies meeting specific global revenue criteria, regardless of their domestic tax position.
| Surtax | Applicable Rate (%) | Criteria |
|---|---|---|
| Domestic Minimum Tax | 15% | Australian operations of multinationals with annual global revenue ≥ €750 million (approx. $1.23 billion AUD / $800 million USD) for income years starting from 1 Jan 2024 |
| Global Minimum Tax (GloBE) | 15% | Large multinationals with annual global revenue ≥ €750 million (approx. $1.23 billion AUD / $800 million USD) for fiscal years starting from 1 Jan 2024 |
Both surcharges ensure a minimum tax on corporations meeting the €750 million annual global revenue threshold, calculated at 15%. The application is based on income years or fiscal years beginning 1 January 2024 or later.
Basis of Assessment and Additional Information
Australia assesses corporate tax strictly on a corporate basis. Information on minimum or maximum holding periods for eligibility or special tax treatments has not been published or is not required for the general corporate tax regime at this time.
Pro Tips for Navigating Australia’s Corporate Tax (2025)
- Review global group turnover annually. Multinationals should verify annual global revenue against the €750 million EUR threshold to determine if minimum taxes and new compliance burdens apply.
- Segment income for accurate banding. Clearly break down your company’s income to ensure the correct application of the 25% and 30% tax brackets, especially if growth might push your taxable income across the $50 million AUD threshold.
- Monitor legislative updates. Australia frequently adjusts tax rules for corporations, particularly multinational groups. Stay informed via the Australian Taxation Office official website.
- Document intercompany transactions clearly. For multinational entities, thorough transfer pricing documentation helps manage exposure to the new minimum tax and prevents disputes.
Further Information and Official References
The primary source for all Australian corporate tax matters—including annual changes, tax band definitions, and filing requirements—is the Australian Taxation Office.
In summary, Australia’s 2025 corporate tax regime is characterized by a progressive bracket system and new minimum tax surcharges imposed on the largest multinationals. Awareness of income thresholds, accurate income segmentation, and attention to international group revenue are essential for both compliance and strategic tax planning. Always refer to authoritative sources to verify updates and ensure ongoing compliance.