More than a quarter of Australia’s largest companies paid zero corporate tax during the 2024–25 financial year, according to Australian Taxation Office figures. The corporate tax transparency report covers 4,299 corporate entities, highlighting heavy revenue generators like Microsoft’s local data center business and Singtel contributing nothing to income tax pools.
Corporate Tax Transparency Report Reveals 1,149 Companies Paid Nil Income Tax
Almost 27 per cent of Australia’s largest corporate entities avoided paying income tax in the 2024–25 reporting period. The Australian Taxation Office released its 12th corporate tax transparency database, covering 4,299 entities that lodged tax returns two financial years prior. Among those, 1,149 entities—representing 27 per cent of the total population—reported paying zero tax. That left 3,150 entities, or 73 per cent, contributing to the tax intake.
Challenging economic conditions, including slow domestic growth, falling commodity prices, and high interest rates, weighed heavily on corporate performance. Total tax payable across the monitored corporate population dropped by $8.2 billion, marking an 8.6 per cent decline down to $87.5 billion compared to the prior year.
ATO acting deputy commissioner Michelle Sams noted that while zero-tax outcomes attract attention, legitimate factors often explain them. The ATO transparency database indicates that companies frequently record nil tax results due to accounting losses, heavy infrastructure investments, operating expenses, or claiming tax deductions and offsets.
“It’s important to remember that a nil tax result doesn’t automatically imply wrongdoing. Many large businesses legitimately pay no income tax but we continue to scrutinise these outcomes closely, as the community expects.”
Michelle Sams, acting deputy commissioner, Australian Taxation Office
Despite the high count of zero-tax filers, Ms Sams pointed out that the proportion of large corporates paying nothing is at its lowest level since corporate tax transparency reporting began in 2013–14, when 36 per cent of companies paid no tax.
Billion-Dollar Revenues Alongside Zero Tax Bills at Microsoft Data Centers and Singtel
Several multinational giants generated immense revenue within Australia while reporting no taxable income. Microsoft’s data center business generated $2.3 billion in Australian revenue during the financial year but reported zero taxable income. By contrast, Microsoft’s separate computer and software division paid $160.6 million in tax after generating more than $9.2 billion in local revenue.
Singtel, the parent company of Optus, shifted from a regular corporate taxpayer prior to 2020 into an entity that routinely reports zero taxable income. In the 2024–25 period, Singtel generated more than $8.3 billion in total income without paying income tax. An Optus spokesperson previously attributed the negative tax position to heavy infrastructure investments and ongoing operating expenses.
Other major earners reporting billions in revenue alongside zero tax liability include Brazilian-owned JBS Global Meat Holdings, which generated more than $4.8 billion in revenue, and New Zealand dairy giant Fonterra, which recorded over $2.4 billion in total income. Sony Australia generated $1.6 billion in revenue and online retailer Kogan recorded $642 million, both paying no tax.
Digital Business Models, Data Centers, and Profit Shifting Under ATO Scrutiny
Tax regulators are intensifying audits on digital infrastructure, cloud computing, and supply chains. The ATO is watching closely to ensure that major digital operators contribute tax that mirrors their actual economic footprint in the country.
“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, Australian Taxation Office
Regulators are also zeroing in on offshore financing, marketing hubs, and related-party royalty payments. Ms Sams explained that when multinational companies make large payments to offshore related entities, the agency wants to ensure those transactions do not artificially reduce profits subject to Australian tax. The ATO is similarly tracking foreign private equity firms when they dispose of local assets to verify proper tax is paid on any capital gains.
To combat cross-border erosion, about 140 countries including Australia previously signed onto the Organisation for Economic Cooperation and Development (OECD) Global Minimum Tax deal. This framework aims to establish a 15 per cent minimum tax rate on multinational profits, contrasting with Australia’s standard 30 per cent corporate tax rate.
Mining Sector Dominance and Mixed Contributions Across Major Corporate Segments
Tax payable remains heavily concentrated within a small cluster of dominant enterprises. The mining, energy, and water segment continued its reign as the single largest contributor to corporate tax revenue, accounting for 41.1 per cent—or $35.9 billion—of the total tax payable in the transparency population.
However, that segment experienced a 25.8 per cent decrease, translating to a $12.5 billion drop from the prior year. Meanwhile, petroleum resource rent tax (PRRT) collections climbed compared to the previous year despite lower oil prices, driven primarily by PRRT taxpayers paying under the deductions cap.
- 1,824 foreign-owned companies with an income of $100 million or more
- 593 Australian public entities with an income of $100 million or more
- 1,882 Australian-owned resident private companies with an income of $100 million or more
Regulatory Pressures, Global Tech Levies, and Pending Legal Hurdles
While tax authorities ramp up enforcement through the Tax Avoidance Taskforce—which has collected $36 billion in additional revenue from large businesses and multinationals since its establishment in 2016—broader legislative efforts face headwinds. Laws intended to take effect on July 1 to boost corporate tax transparency were blocked, pausing hopes for immediate post-PwC transparency reforms.
Technology companies are facing new compliance challenges. An ATO ruling designed to curb profit shifting is expected to pull in substantial revenue from tech firms, though industry legal challenges remain anticipated. Parliament also enacted revamped media bargaining laws in August, setting the stage for potential levies on global tech platforms that fail to strike commercial agreements with Australian news publishers.
