Starting a business in
🇦🇺Australia
Checked November 4, 2026 · How we score
Corporate tax
30%
Top income tax
45%
Setup from
$800
all-in, first year
Time to form
3 days
visit usually needed
Taxes in Australia
| Corporate income tax | 30% 30% standard rate. Base rate entities (aggregated turnover under A$50m and no more than 80% passive income) pay 25%. Franking credits let resident shareholders offset company tax. The R&D tax incentive gives a refundable offset of 18.5 percentage points above the corporate rate for turnover under A$20m. A 15% domestic minimum tax applies to large multinational groups from 2024. |
|---|---|
| Personal income tax (top) | 45% Resident rates: 0% to A$18,200, 16% to A$45,000, 30% to A$135,000, 37% to A$190,000 and 45% above, plus a 2% Medicare levy. Non-residents pay 30% from the first dollar of Australian-source income up to A$135,000, then 37% and 45%. Residents are taxed on worldwide income; temporary residents have foreign-income exemption. |
| Tax system | Worldwide income |
| Capital gains tax | 45%Net capital gains are added to taxable income and taxed at marginal rates up to 45%. Individuals and trusts holding assets 12+ months get a 50% discount (effective top rate of 22.5%). Non-residents lose the discount on gains after May 2012. |
| Dividend withholding (non-residents) | 30% |
| VAT / GST | 10% |
| Social security | Superannuation guarantee is 12% of salary from 1 July 2025, paid by employers. Payroll tax applies by state above thresholds. Unfranked dividends to non-residents face 30% withholding (15% under most treaties); fully franked dividends are exempt. |
Forming a company in Australia
| Usual entity | Pty Ltd (proprietary limited company) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $800–$2,500 |
| Annual running cost | $2,500–$7,000 |
| Time to incorporate | 3 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
The Significant Investor Visa closed in 2024 and was replaced by the National Innovation Visa, a points-tested route for founders and exceptional talent. There is no digital nomad visa; remote workers on a visitor visa may not work for Australian clients. Skilled Independent (189), Employer Sponsored (482) and Global Talent visas are the common founder routes.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
Base rate entity (25%)
Companies with aggregated turnover under A$50m and passive income at or below 80% pay 25% instead of 30%.
R&D Tax Incentive
A refundable tax offset of the company tax rate plus 18.5 percentage points for eligible R&D spend by companies with aggregated turnover under A$20m.
Small business CGT concessions
Additional CGT relief such as a 15-year exemption, 50% active asset reduction and retirement exemption when small business owners sell active assets.
National Innovation Visa
Points-tested visa for founders, investors and exceptional talent that replaced the Business Innovation and Investment Program in December 2024.
Pros and cons
Why founders pick Australia
- Highly credible legal and banking system
- Low-cost company registration
- Refundable R&D tax incentive for startups
- Dividend imputation avoids double tax for resident owners
Watch out for
- At least one director must be ordinarily resident in Australia
- High personal tax rates and worldwide taxation of residents
- Bank accounts for non-residents are hard to open remotely
- Complex GST, payroll and superannuation compliance
Best for: Companies selling into Australia or New Zealand · Startups seeking R&D incentives · Founders who plan to relocate and want a high-credibility base
Australia: common questions
What is the company tax rate in Australia?
The company tax rate is 30%, or 25% for base rate entities with aggregated turnover under A$50 million and passive income of 80% or less. Dividends can carry franking credits that offset shareholders' tax.
Can a foreigner own a company in Australia?
Yes. A foreign person can be the sole shareholder of a Pty Ltd, but at least one director must ordinarily reside in Australia. Foreign investments over certain thresholds, and in sensitive sectors, require FIRB approval.
How much does it cost to set up a company in Australia?
ASIC registration is a few hundred Australian dollars, and most agents charge a total of about $800 to $2,500 including a registered office. Annual ASIC review fees plus accounting and tax filings typically cost $2,500 to $7,000.
Does Australia have a digital nomad visa?
No. Visitors cannot work for Australian clients, and the Working Holiday visa is available only to certain nationalities. Founders can consider the National Innovation Visa or employer-sponsored routes.
What is the capital gains tax in Australia?
Net capital gains are added to taxable income and taxed at the individual's marginal rate up to 45%. Assets held more than 12 months receive a 50% discount for Australian residents, so the top effective rate is 22.5% plus Medicare levy.
Sources
- Australian Taxation Office
- ASIC - Starting a company
- Department of Home Affairs - Visas
- PwC Tax Summaries - Australia
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.