Base Rate Entity Checker

Checks whether a company qualifies for the 25% base rate entity company tax rate, or must pay the standard 30% rate.

Rates & assumptions used in this calculator

Two tests, both must pass: aggregated turnover under $50 million (the "turnover test"), and no more than 80% of assessable income is base rate entity passive income (the "passive income test"). These thresholds are unchanged for both FY2025-26 and FY2026-27.
Base rate entity passive income includes dividends, interest, rent, royalties, net capital gains, and some trust/partnership distributions of these income types — broadly, income not from actively carrying on a trading business.
Aggregated turnover includes the turnover of connected entities and affiliates, not just the company in isolation — a common trap for family business groups where each entity looks small individually but the group exceeds $50 million combined.
Status is reassessed every income year — a company that qualified last year isn't automatically a base rate entity this year.
Company tax rate: 25% if both tests pass, otherwise 30%.

Based on ATO base rate entity guidance (s 23AA, Income Tax Rates Act 1986; LCR 2019/5) as at July 2026. Confirm connected entity and affiliate turnover with a registered tax agent before relying on this classification.

Company details

$5,000,000 turnover · 10% passive

Aggregated turnover

Include connected entities and affiliates

Total assessable income

Of which, base rate entity passive income

Dividends, interest, rent, royalties, net capital gains

Turnover test$5,000,000 vs $50,000,000 threshold Pass

Passive income test10.0% vs 80% threshold Pass

Not Sure If Your Company Qualifies?

Aggregated turnover and passive income classification can be easy to get wrong — especially across connected entities and family groups. Our accountants can confirm your company's base rate entity status before you lodge.

ATO compliant Group structures reviewed Audit-ready

This is a general estimate only, not tax advice. It doesn't determine aggregated turnover including connected entities and affiliates, or classify each income item as passive — both require careful review. Refer to a registered tax agent to confirm base rate entity status before lodging.