Australia's headline corporate income tax (CIT) rate is 30% (25% for small-medium business entities).
The headline personal income tax (PIT) rate is 45.
The standard VAT/GST (or equivalent consumption tax) rate is 10 (GST). Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Australia applies four independent tests, any one of which is sufficient to establish tax residency: the Resides Test (a facts-and-circumstances assessment of whether Australia is genuinely where someone lives - family location, employment, property, community ties), the Domicile Test, the 183-Day Test (present in Australia for 183+ days in a financial year - 1 July to 30 June - unless the person's usual place of abode is demonstrably outside Australia and they have no intention to reside), and the Commonwealth Superannuation Test (certain government employees posted abroad). Legislated reform toward a simpler "bright line" primary test (183 days, full stop) has been proposed following a 2019 Board of Taxation review but was not yet in force as of the most recent verification - confirm current status before relying on this. Residents are taxed on worldwide income; non-residents only on Australian-source income.
Australia's CFC regime requires resident shareholders with sufficient interests in a foreign company to include their share of the CFC's "attributable income" in their own assessable income, regardless of distribution. Whether income is attributable depends on whether the CFC is resident in a "listed" or "unlisted" country and whether it passes an active income test; passive and tainted income (including certain concessionally taxed dividends, interest, and royalties classified as "eligible designated concession income") is more likely to be attributed. Notably, Australia's domestic thin capitalization and debt-deduction-creation rules do not apply to CFCs in the same manner as to resident companies - CFC attributable income is calculated with its own specific modifications.
Australia replaced its former asset-based thin capitalization test with a fixed ratio EBITDA-style regime for income years starting on or after July 1, 2023 (implementing OECD BEPS Action 4). General class investors and non-ADI financial entities now choose among three tests: the Default Fixed Ratio Test, a Group Ratio Test, or a Third-Party Debt Test (which permits related-party debt deductions only where strict conditions are met, including limited recourse to specified assets). The former arm's-length debt test has been removed entirely. Separate "debt deduction creation rules," targeting related-party arrangements that artificially generate debt deductions, apply to income years starting on or after July 1, 2024.
Australia maintains tax treaties with 46 jurisdictions per PwC. Several new or updated treaties have been signed but were not yet in force as of the most recent update, including with Portugal, Slovenia, Ukraine, and Croatia; Australia is also negotiating its first treaty with Brazil and updating existing treaties with New Zealand, South Korea, Sweden, and Canada. The current authoritative list is maintained by the Australian Treasury.