The Australian Taxation Office (ATO) revealed that 27% of large companies in Australia paid no corporate tax in the 2024–25 financial year, according to its 12th corporate tax transparency report. The data, published on 2026-09-30, covers 4,299 entities that filed tax returns two years prior. Of these, 1,149 (27%) did not pay tax, while 3,150 (73%) did. The report highlights a continued decline in tax payments, with the percentage of companies paying no tax reaching its lowest level since 2013–14. The ATO noted that tax payable decreased by $8.2 billion, attributed to economic challenges such as slow growth, declining commodity prices, and high interest rates.
Microsoft and Singtel Among Firms with Zero Tax on Billions in Revenue
Microsoft’s datacentre business and Singtel, the parent company of Optus, are among major corporations that generated billions in Australian revenue while paying zero income tax in 2024–25, according to the ATO’s transparency database. Microsoft’s datacentre operations reported $2.3 billion in revenue but no taxable income, while Singtel generated over $8.3 billion in total income without paying tax. The ATO is required to publish tax information for entities with at least $100 million in Australian income, though it does not specify reasons for zero tax payments, citing potential legitimate factors such as losses, deductions, or offsets.
Other companies with significant revenue and minimal tax contributions include Netflix, which paid $8.4 million in tax on $1.4 billion in local revenue, and TikTok Australia, which paid $17.3 million on $686.6 million in revenue. Brazilian-owned JBS Global Meat Holdings reported $4.8 billion in revenue but paid no tax, joining entities like New Zealand’s Fonterra ($2.4 billion in income), Sony Australia ($1.6 billion), and online retailer Kogan ($642 million).
ATO Focuses on Digital Businesses and Profit Shifting
The ATO’s acting deputy commissioner, Michelle Sams, emphasized the agency’s increased scrutiny of digital businesses and supply chains, including data centres, to ensure tax contributions reflect economic activity. We look very closely if there’s no tax being paid in significant industries… to make sure the level of tax being paid reflects the economic activity that’s happening in Australia,
Sams said. The agency has prioritized companies using offshore financing and marketing hubs, as well as those with complex digital business models.
The ATO’s efforts align with the OECD’s Global Minimum Tax deal, which mandates a 15% tax rate on multinational profits. However, challenges persist, as laws aimed at curbing profit shifting face legal hurdles. The agency’s Tax Avoidance Taskforce has collected $36 billion in additional tax revenue since 2016 through reviews and audits. Meanwhile, revamped media bargaining laws passed in August could lead to levies on tech platforms that fail to negotiate with Australian news outlets.
Context of Tax Payments and Corporate Strategies
The ATO’s report underscores the complexity of corporate tax strategies, particularly for multinational firms. Overseas companies often reduce taxable income by channeling profits through lower-tax jurisdictions, a practice known as profit shifting. While the ATO acknowledges legitimate reasons for zero tax payments, it remains vigilant against practices that undermine tax fairness. For instance, Singtel’s shift to zero taxable income since 2020 was attributed to infrastructure investments and operating expenses by an Optus spokesperson.
The findings highlight ongoing debates about corporate accountability and tax equity. With digital industries like data centres and cloud computing driving economic activity, regulators face pressure to adapt enforcement strategies. The ATO’s focus on these sectors reflects broader global efforts to address tax avoidance, even as legal and political challenges delay implementation of new measures.