Base Rate Entity (BRE) Calculator

Check whether your company qualifies as a base rate entity and estimate the company tax rate that may apply based on your turnover and passive income. Our Base Rate Entity Calculator provides a quick indication using the current eligibility rules.

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Understand Your Base Rate Entity Status Before Lodging

A company’s eligibility for the base rate entity (BRE) tax rate isn’t just about turnover. The ATO also looks at how much passive income your company earns during the year. Our Base Rate Entity Calculator gives you a simple way to estimate whether your company may qualify for the lower tax rate.

Simply enter your aggregated turnover, total assessable income, and base rate entity passive income to get an instant estimate. It suits business owners, directors, and accountants wanting a quick check before preparing a company tax return. If your company has connected entities, affiliates, or a complex income structure, it’s worth getting professional advice to confirm eligibility and obligations.

Need Help Confirming Your Company's Tax Rate?

Determining base rate entity eligibility can be more complex than it appears. Our registered tax professionals can review your company’s income, confirm the correct tax rate and ensure your business remains compliant with ATO requirements.

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FAQs

Got Questions? We've Got Answers

Clear answers to help you understand your company’s base rate entity status.

What is a base rate entity?

A base rate entity is a company that qualifies for the lower 25% company tax rate, because it meets both the turnover test and the passive income test.

What is the turnover test for a base rate entity?

Your company’s aggregated turnover needs to be under $50 million for the income year.

What counts as passive income for this test?

Passive income generally includes things like rent, interest, dividends, royalties, and net capital gains, rather than income from actively running your business.

What happens if my passive income is too high?

If more than 80% of your company’s income comes from passive sources, it won’t qualify as a base rate entity, even if turnover is under $50 million, and the standard 30% rate applies instead.

Does my company automatically get the lower tax rate if it's small?

No. Being under the turnover threshold isn’t enough on its own. Your company also needs to pass the passive income test each year.

Can my company's status change from year to year?

Yes. Base rate entity status is worked out separately for each income year, so a company can qualify one year and not the next, depending on its turnover and income mix.

Does base rate entity status affect franking credits?

Yes. Base rate entities generally use a 25% franking rate for dividends, while other companies use 30%, so getting this right matters for your shareholders too.

Do I need to elect to be treated as a base rate entity?

No. It’s not something you elect into. Your company is automatically treated as a base rate entity for a year if it meets both tests.

Get Your Company Tax Right From the Start

We’ll review your turnover, income and business structure to confirm whether your company qualifies as a base rate entity and calculate the correct tax rate.