Why Over a Quarter of Big Companies Paid Little or No Tax in Australia
More than one-quarter of large companies in Australia paid no or little corporate tax in 2024-25, according to the Australian Taxation Office transparency database published on 1 October 2026. The Guardian
The release is the twelfth annual Corporate tax transparency report 2024-25. Parliament requires the ATO to publish tax information for all entities that generate at least $100m in Australian income. Those figures sit in the related Report of entity tax information. ATO
Technology and media groups appear in the 2024-25 figures. It helps to separate three terms. Total income or revenue is money coming in. Taxable income is what remains after deductions allowed by law. Tax payable is the tax charged on that remainder. Microsoft's datacentre business generated $2.3bn in revenue from Australia but reported no taxable income. Its separate computer and software business generated more than $9.2bn in revenue and paid $160.6m in tax. Netflix's Australian operation paid $8.4m in tax after generating more than $1.4bn in local revenue. TikTok Australia paid $17.3m in tax after recording $686.6m in revenue.
Telecommunications, food, retail and entertainment entities also reported large Australian income with zero tax payable. Singtel generated more than $8.3bn in total income in Australia and paid no tax. It was a regular taxpayer in Australia before 2020 and now regularly reports zero taxable income. JBS Global Meat Holdings generated more than $4.8bn in revenue in Australia but paid zero tax. Fonterra generated more than $2.4bn in total income in Australia and paid no tax. Sony Australia reported $1.6bn in revenue in Australia and paid no tax. Kogan reported $642m in revenue in Australia and paid no tax.
The ATO said it examines non-payment in capital-intensive and fast-scaling sectors, where large upfront costs or rapid growth are common. Acting Deputy Commissioner Michelle Sams said the ATO looks very closely if no tax is paid in significant industries including datacentres to ensure tax reflects economic activity in Australia. Separately, the ATO reported that 82% of the Top 100 corporate population achieved either high or medium assurance for income tax. ATO
This pattern is not new. More than a quarter of large companies in Australia paid no income tax in 2023-24. In that year, the parent company of Optus was among the large companies that paid no income tax.
The broader context here is what transparency is for. The database does not decide how much tax is owed. It places total income or revenue alongside taxable income and tax payable for entities above the statutory threshold, so advisers, legislators and competitors can test the gap. For specialists, Microsoft's split reporting and the change in Singtel's taxable-income position after 2020 carry more weight than the headline zero-tax count.
What this signals for compliance is closer attention on datacentres. The ATO links close review to whether tax paid reflects economic activity in Australia. Combined with the Top 100 assurance result, the message points to differentiated treatment. Entities with high or medium assurance face less friction. Entities with persistent zero taxable income against billions in Australian income should expect continued review, even where structures are lawful.
