More than 1000 big companies paid no tax as ATO scrutinises data centres
Nearly 30 per cent of big companies paid no tax during 2024–25, an Australian Taxation Office (ATO) report released on Thursday shows.
Analysis of tax returns lodged by major firms two years ago found that from 4299 entities, there were 1149 (27 per cent) that did not pay tax.
More than 1000 big companies in Australia paid no tax, a new report shows. Tanya Lake
Those businesses largely claimed an accounting loss – when expenses outstrip revenue – the report says.
ATO acting deputy commissioner Michelle Sams says officials are striving to ensure digital industries pay their share of tax.
“An area of focus for the ATO is on digital business models and supply chains including data centres given the significant growth of cloud computing and the data hosting industry,” she said.
Sams said ATO audits cover a range of different topics and industries but predominantly relate to international related party dealings and cross-border investments and structures.
Mining companies and supermarket chains headed the 3150 entities (73 per cent) that did pay corporate tax.
The finance sector, boosted by interest rate hikes and big bank profits, paid $17.8 billion.
Mining companies were among the biggest corporate taxpayers. Glenn Campbell
Agriculture, construction and manufacturing contributed $8.3 billion.
But higher interest rates, slowing economic growth and a dip in commodity prices impacted the amount of corporate tax that reached government coffers.
The tax yield from big business slumped by $8.2 billion (8.6 per cent) to $87.5 billion, compared with the previous year.
Sams said there were legitimate reasons why a company may pay no income tax.
"'It's important to remember that a nil tax result doesn't automatically imply wrongdoing," she said.
The ATO’s corporate tax transparency report was the 12th edition of the annual disclosure of corporate Australia’s tax returns.
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