Microsoft's datacentre business, Optus parent Singtel and major coal and gas companies are among a group of large corporations generating billions of dollars in revenue in Australia while paying zero income tax.
Well-known multinationals including Netflix also only pay tax on a small fraction of their turnover, according to the Australian Taxation Office.
ATO database reveals widespread zero-tax payments
The ATO's transparency database for 2024-25 shows more than one-quarter of big companies, often based overseas, regularly pay no or little corporate tax in Australia.
This includes the Brazilian-owned JBS Global Meat Holdings, which generated more than $4.8bn in revenue but paid zero tax, in a recurring pattern for the global food company.
Adani Mining, the operator of the Carmichael thermal coalmine in Queensland, has never paid tax after opening in 2021, despite earning significant sums.
The sprawling Inpex-led Ichthys LNG project near Darwin also continued a years-long run of not paying tax, despite generating $9.7bn in income in 2024-25, as did energy retailer AGL, which paid no tax despite earning $13.1bn.
The New Zealand dairy giant Fonterra – with more than $2.4bn in total income – was another major earner that didn't pay tax, as was Sony Australia ($1.6bn in revenue) and the online retailer Kogan ($642m).
Reasons for zero tax and profit shifting
While the ATO does not typically publish tax information of individuals or companies, it is required by parliament to do so for all entities that generate at least $100m in Australian income.
The report did not provide detail as to why individual companies paid zero tax but noted there could be legitimate reasons for it – including making a loss, or using deductions and offsets to lower the taxable income.
Overseas companies often reduce their taxable income by making payments to related entities located in lower-taxing jurisdictions. The practice is known as profit shifting and can attract the scrutiny of regulators.
Jason Ward, the principal analyst at the Centre for International Corporate Tax Accountability and Research, said many resource projects reduce their tax bills by shifting profits to lower taxing jurisdictions.
“Singapore is the key place to shift profits to, and has been for some time,” said Ward.
While Singapore has an official 17% corporate tax rate – almost half that of Australia's – it also boasts a system of negotiated tax breaks and discretionary incentives.
“Companies use it as a marketing hub, and you can sell your coal or LNG to your subsidiary in Singapore, and the profit of the actual raw material is booked there, not Australia,” Ward said.
Tech focus and regulatory response
The ATO's acting deputy commissioner, Michelle Sams, said the agency was increasingly focused on making sure digital businesses and supply chains paid their share of tax.
“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,” Sams said.
Microsoft's datacentre business generated $2.3bn in revenue from Australia during the financial year but reported no taxable income. The company's computer and software business paid $160.6m in tax after generating more than $9.2bn in revenue in Australia.
A spokesperson for Microsoft said the company pays all tax required under Australian laws.
Netflix's local operation, which regularly pays little tax in Australia, paid the ATO $8.4m after generating more than $1.4bn in local revenue. TikTok Australia paid $17.3m in tax after recording $686.6m in revenue.
An ATO ruling designed to clamp down on profit shifting is expected to raise significant sums from technology companies. But it is expected to face legal challenges.
Parliament also passed revamped media bargaining laws in August, clearing the way for levies on global tech platforms that fail to strike deals with Australian news outlets over the use of their journalism.
Ward said many technology companies reduce their tax bills by using offshore tax havens.
“Sadly, it's pretty easy to do. You just put your intellectual property in a tax haven jurisdiction, and rather than book the value of the sale in Australia, it's essentially shifted to somewhere else where it gets a much lower, lighter tax treatment,” he said.
Singtel went from a regular taxpayer in Australia before 2020 to a company that now regularly reports zero taxable income.
In 2024-25, it generated more than $8.3bn in total income but didn't pay tax.
Optus was contacted for comment on Thursday.
An Optus spokesperson has previously said the company's negative tax position was due to infrastructure investments and operating expenses.
