What is thr company tax rate ?

Simple question. What is the rate of compny tax in the 2018 year ?

 

Its not a simple answer.

1. Is it a small business
2. Does the company have business TURNOVER?????

Passive income does not count...Investment income does not count. Do waht occurs if the income includes investmnet income and trading income ?? Passive rent ?Trust income ?

What is the rate of franking credits ??

No tac]x agent ? OMG its complex

 

Isn't that why we pay you $$$$$ to work out

 

For me; zero...

 

Yes a company tax rate can also be zero if there are tax losses (or no profit). But losses arent automatically always available.

 

Footnote 3 of TR2017/D2 (and the relevant case law) would suggest that all companies are carrying on a business if they are established or maintained to make a profit for their shareholders. Arguably even if you only have passive income you are eligible for the small business company tax rate

 

My accountant was trying to explain to me and I might or might not have understood but it's certainly getting more complex. With the rate of the company tax going down the company franking credits will need a 'top up' to cover the difference between the new rate and personal tax rate.
It seemed as clear as mud but I get his gist that with the company rate going down but personal rate not going down the divide between the two is getting larger and the tax department will want someone to pay that difference.
Hope I haven't confused anyone or said something totally stupid

 

Thats a fair point....The shortfall you refer to will be met by the shareholder. After all, full and final tax ends when the shareholder is assessed. At their tax rate with a credit given at the companies specific tax rate (27.5%?) - A shareholder at the top marginal rate may well face a shortfall that is going to get larger.

The removal of the 2% budget levy may likely address such a sum however

 

The ATO giveth a tax break to the small biz owner and the ATO taketh away when you distribute.