Microsoft’s datacentre business, parent‑company Singtel and several large coal and gas firms are among a cohort of big Australian corporations that generate billions in revenue yet owe no income tax, according to the Australian Taxation Office’s 2024‑25 transparency database.
Other well‑known multinationals such as Netflix also file taxes only on a tiny slice of their turnover, according to the ATO’s data.
The ATO found that more than a quarter of large entities, many headquartered abroad, regularly pay little or no corporate tax.
Specific cases illustrate this pattern: Brazilian‑owned JBS Global Meat Holdings earned over $4.8 billion in 2024‑25 yet recorded zero tax; Adani Mining, operator of the Carmichael thermal coalmine in Queensland, has never paid tax since opening in 2021; and the Inpex‑led Ichthys LNG project, which generated $9.7 billion in 2024‑25 income, has also avoided taxation. Energy retailer AGL reported no tax on earnings of $13.1 billion, as did the New Zealand dairy giant Fonterra (revenue $2.4 billion), Sony Australia ($1.6 billion) and online retailer Kogan ($642 million).
Although the ATO does not normally publish tax details for individuals or companies, it is legally required to disclose filings for any entity that records at least $100 million in annual Australian income.
Legitimate reasons for low taxable income—such as operating losses or strategic deductions that diminish net earnings—explain why many of these large firms benefit from minimal tax obligations.
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Industry analysts highlight Singapore as the primary hub for moving profits to lower‑tax jurisdictions, a strategy even the country acknowledges can dramatically dilute the tax base.
“Singapore is the key destination for shifting profits,” says Jason Ward, principal analyst at the Centre for International Corporate Tax Accountability and Research. “The nation offers an official corporate tax rate of roughly 17 %, nearly half of Australia’s, complemented by a network of negotiated tax breaks and discretionary incentives.”
“Firms effectively treat it as a marketing centre. They export commodities to an associated Singapore subsidiary, so the underlying profit of the raw material is recorded there rather than in Australia,” Ward added.
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The ATO’s acting deputy commissioner, Michelle Sams, emphasized that the agency is intensifying scrutiny on digital businesses and their supply chains.
“We closely review whether no tax is owed in significant sectors—incl. datacentres—to confirm that the payment aligns with actual economic activity in Australia,” Sams noted.
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Microsoft’s datacentre segment generated $2.3 billion in Australian revenue during FY2024‑25 while reporting zero taxable income. Its wider software and computer divisions paid $160.6 million after generating more than $9.2 billion in domestic revenue.
A Microsoft spokesperson confirmed the firm complies with all Australian tax obligations. Meanwhile, Netflix’s local arm reported tax payments of $8.4 million against more than $1.4 billion in revenue, while TikTok Australia paid $17.3 million on $686.6 million in turnover.
An ATO decision aimed at curbing profit shifting is poised to extract substantial tax revenues from the technology sector, although it faces anticipated legal challenges.
Furthermore, Parliament passed revised media‑bargaining legislation in August, creating a pathway for levy charges against global tech platforms that refuse to negotiate with Australian news outlets for usage rights to journalistic content.
Analysts observe that many technology firms slash their tax outlays by leveraging offshore IP structures—they relocate intangible assets to low‑tax enclaves and book related profits abroad rather than in Australia.
“It’s remarkably straightforward: place your intellectual property in a tax haven, and instead of recognizing revenue here, it sits in a jurisdiction with far lower tax rates,” cautions Ward.
Singtel exemplifies the shift—previously a consistent payer before 2020, it now regularly reports zero taxable income after generating over $8.3 billion in total income for 2024‑25.
Optus was approached for commentary on Thursday. A press release cited its former representative attributing the prior negative‑tax stance to extensive infrastructure investment and operating expenditures.
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