Document ID: chunk:federal_register_of_legislation:C2024C00381:section:23
Version: federal_register_of_legislation:C2024C00381
Segment Type: section
Provision Reference: s 23
Character Range: 43702–46084

23  Rates of tax payable by companies
 (1A) This section has effect subject to section 23A.
 (1) The rates of tax payable by a company, other than a company in the capacity of a trustee, are as set out in the following provisions of this section.
 (2) The rate of tax in respect of the taxable income of a company is:
 (a) if the company is a base rate entity for a year of income—25%; or
 (b) otherwise—30%;
if subsections (3) to (5) and section 23A do not apply to the company.
 (3) The rates of tax in respect of the taxable income of a company (other than a life insurance company) that is an RSA provider are:
 (a) in respect of the RSA component—15%; and
 (b) in respect of the standard component:
 (i) if the company is a base rate entity for a year of income—25%; or
 (ii) otherwise—30%.
 (4) The rates of tax in respect of the taxable income of a company that becomes a PDF during a year of income and is still a PDF at the end of the year of income are:
 (a) in respect of the SME income component—15%; and
 (b) in respect of the unregulated investment component—25%; and
 (c) in respect of so much of the taxable income as exceeds the PDF component:
 (i) if the company is a base rate entity for a year of income—25%; or
 (ii) otherwise—30%.
 (5) The rates of tax in respect of the taxable income of a company that is a PDF throughout the year of income are:
 (a) in respect of the SME income component—15%; and
 (b) in respect of the unregulated investment component—25%.
 (6) The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the Income Tax Assessment Act 1997)) must not be greater than 55% of the amount (if any) by which the taxable income of the company exceeds $416, if:
 (a) the company is a non‑profit company; and
 (b) the taxable income is not greater than:
 (i) if the company is a base rate entity for a year of income—$762; or
 (ii) otherwise—$915.
 (7) The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the Income Tax Assessment Act 1997)) must not be greater than:
 (a) if the company is a base rate entity for a year of income—37.5%; or
 (b) otherwise—45%;
of the amount by which the taxable income of the company exceeds $49,999, if the company is a recognised medium credit union in relation to the year of income.