Microsoft’s datacentre business and Optus parent Singtel are among several major corporations generating billions of dollars in revenue in Australia while paying zero income tax. Notable multinationals, including Netflix, also pay tax on only a small fraction of their turnover, according to the Australian Taxation Office (ATO).
ATO Transparency Database Findings
The ATO’s transparency database for 2024-25 reveals that more than one-quarter of large companies, often based overseas, regularly pay no or little corporate tax in Australia. This includes JBS Global Meat Holdings, which is Brazilian-owned and generated over $4.8 billion in revenue but paid zero tax, a recurring pattern for the global food company.
While the ATO typically does not publish tax information for individuals or companies, it is mandated by parliament to disclose data for all entities generating at least $100 million in Australian income. The report did not specify why individual companies paid zero tax but noted there could be legitimate reasons, such as making a loss or utilizing deductions and offsets to lower taxable income.
Profit Shifting Concerns
Overseas companies often reduce their taxable income by making payments to related entities located in lower-tax jurisdictions, a practice known as profit shifting, which can attract regulatory scrutiny. Michelle Sams, the ATO’s acting deputy commissioner, stated that the agency is increasingly focused on ensuring that digital businesses and supply chains pay their fair share of tax.
