Blog tagged as Company Tax

Companies must pass both an aggregated turnover test and an 80% passive income test to access the lower 25% rate, and both need to be checked every single year — not assumed to carry forward.

Informal money movements between a company and its directors can accidentally trigger Division 7A, turning a simple withdrawal into taxable income at the director's personal rate. This guide explains what triggers it, how to structure a compliant loan, and why the fix depends on timing.