Assignment Task:
ABC Pty Ltd is an Australian resident company. ABC has been carrying on a sales and investment business since the income year ended 30 June 2017. It has no connected or affiliated entities. ABC only holds investments in Australian companies where it can own 10-15% of the total shareholdings.
ABC has provided the following information about its operations for the income year ended 30 June 2022:
- Sales income of 8 million and related expenses of 3 million
- Interest income of 5 million from the investment business and related expenses of 2 million
- Unfranked dividend income of 7 million from the investment business and no related expenses.
ABC's general manager is unsure of the corporate tax rate that will apply to ABC for the income year ended 30 June 2022.
Question: Determine and explain ABC's corporate tax rate for the income year ended 30 June 2022. Provide key legislative section reference to support workings.