Full Breakdown
Major Corporations Report Zero or Minimal Tax in Australia for 2024-25
By Drooid · · How we work
Core Findings: Large Revenues, Little or No Tax
Data from the Australian Taxation Office (ATO) for 2024-25 show that several of the country’s biggest revenue-generating firms paid little or no corporate income tax. Microsoft’s datacentre operation, Singtel’s Optus, Netflix and News Corp’s Australian arm recorded zero taxable income, while others paid only a fraction of their revenue in tax.
Background: ATO Transparency Requirements and Profit Shifting
The ATO’s transparency database, required for entities with at least $100 million of Australian income, indicates that more than one-quarter of large corporations regularly report no or minimal tax. Zero-tax outcomes can stem from legitimate losses, deductions, or the allocation of profits to related entities in lower-tax jurisdictions.
Companies Highlighted
- Microsoft – Datacentre business generated $2.3 bn in revenue with no taxable income; its software segment paid $160.6 m tax on $9.2 bn revenue.
- Netflix – Paid $8.4 m tax after earning $1.4 bn in Australian revenue.
- Singtel/Optus – Reported $8.3 bn total income and paid no tax.
- News Australia Holdings (News Corp) – Earned $1.89 bn revenue and $300 m profit, yet paid zero tax.
- Fonterra – Generated $2.4 bn income with no tax payable.
- Santos – Had over $5 bn revenue, paid no corporate tax, but contributed $250 m in petroleum resources rent tax (PRRT).
- AGL – Utilised tax losses to avoid tax on $13 bn revenue.
- Energy Australia – Same strategy on $7 bn revenue.
- Rio Tinto and BHP – Top overall taxpayers, contributing $5.2 bn and $5.3 bn respectively on combined profits exceeding $52 bn.
- Major banks – Commonwealth Bank ($3.8 bn), Westpac ($2.7 bn), NAB ($2.3 bn), ANZ ($1.7 bn) in tax.
- Tech giants – Combined tax of $700 m on nearly $43 bn revenue, led by Apple ($199 m) and Amazon ($210 m).
Data & Statistics Summary
- Zero-tax corporations include Microsoft datacentre, Optus/Singtel, Netflix (minimal), News Corp, Fonterra, Santos, AGL and Energy Australia.
- Revenue without tax ranges from $642 m (Kogan) to $10.6 bn (Ichthys LNG).
- High-paying firms such as Rio Tinto, BHP, Fortescue, the major banks, Qantas, Woolworths, Coles, Telstra, Apple and Amazon supplied the bulk of corporate tax receipts.
Official Statements & Responses
An Optus spokesperson said the negative tax position reflects “infrastructure investments and operating expenses.”
The government’s recent media-bargaining reforms, passed in August, aim to levy global tech platforms that do not reach agreements with Australian news outlets.
Potential Legal and Policy Implications
The ATO is preparing a ruling to curb profit-shifting arrangements, which could raise significant sums from technology firms and is expected to face legal challenges. The revamped media-bargaining laws may also impose further obligations on multinational digital platforms.
What’s Next
- The ATO profit-shifting ruling will be implemented later this year, with likely court contests.
- Ongoing monitoring of the transparency database will continue to highlight zero-tax positions and inform policy debates.
Verbatim Quotes
- “We look very closely if there’s no tax being paid in significant industries, including things like datacentres, to make sure that the level of tax being paid reflects the economic activity that’s happening in Australia,” — Michelle Sams, acting deputy commissioner