(a) That's right. A company that trades successfully will make profits. 'Profits' means the money that is left over after all the running expenses of the company have been paid, including payments to employees, officers and directors. Profits belong to the company, and the company is liable to pay tax on these profits. Tax rates are constantly reviewed and should be checked each year.

The tax rates currently applied to companies depends on whether or not they have an annual  turnover of more than $50 million. If they do, the current rate of tax on profits is 30%. If the turnover is less than $50 million, the current rate of tax on profits is 27.5%.  Non-resident companies are subject to taxes on profits made in Australia, at the same rate as Australian-based companies. 

Assuming that the company does not need to accumulate further capital, the profits are available to be distributed among the shareholders. Payments to shareholders from company profits are called 'dividends'.

The Corporations Act 2001 (Cth) gives the directors the power to decide when to pay dividends to shareholders, and the extent of the dividend. In making these decisions, the directors will of course be bound by the replaceable rules of internal governance, or by relevant rules in the company's constitution. In particular, there may be different classes of shareholders with different rights to share in a dividend.

When dividends are paid to shareholders, they receive a tax credit equal to the relevant amount of tax already paid by the company.