The Australian Taxation Office released corporate tax transparency data for the 2024-25 financial year, revealing that 27 percent of companies on the tax transparency list paid no corporate tax.
Biggest Corporate Taxpayers
Banking and resource sectors lead in tax contributions. Rio Tinto paid $5.2 billion, while BHP contributed $3.9 billion, making them the top two corporate taxpayers. The Commonwealth Bank paid $3.8 billion in corporate tax, Westpac and National Australia Bank each paid $2.6 billion and ANZ $1.6 billion. Macquarie Group reported $24.2 billion in revenue but paid only $440 million in taxes.
Food and grocery companies also feature prominently in earnings. All four companies—Woolworths, Coles, ALDI, and Metcash—rank within the top 30 earners despite operating on relatively thin margins. Woolworths paid $622 million in tax, Coles $414 million, ALDI $204 million, and Metcash $85 million. Despite their large revenues, these companies operate on thin profit margins, which significantly affects their tax liabilities. Their business models, focused on competitive pricing, result in lower taxable income compared to other sectors.
Companies Avoiding Corporate Tax
Chevron, a U.S.-owned company, reported $6.8 billion in earnings from Australian gas and oil extraction but paid zero corporate tax, instead contributing $166 million in Petroleum Resource Rent Tax. Power companies AGL and Energy Australia utilized tax losses to avoid tax on $13 billion and $7 billion in revenue respectively. Singtel, the owner of Optus, avoided tax on $8 billion in revenue through specific accounting practices.
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The insurance sector shows mixed patterns. Insurance Australia Group paid no tax on $17.8 billion in earnings, as did Prudential, Hanover, and RACV. Conversely, QBE, Auto, General Insurance, RACQ, and others contributed to the ATO. Habit Financial Services, a Sydney-based stockbroker, reported $690 million in earnings with just $424 in taxable income, paying the smallest tax amount of $127 among companies that did pay tax. This stark contrast highlights the diverse strategies employed across the sector. A Murdoch newshound might question why a company generating $13 million weekly in revenue and paying virtually no tax cannot afford its own office, instead operating from shared spaces in Sydney’s Angel Place.
Murdoch Media’s Tax Avoidance
News Australia Holdings, which owns Rupert Murdoch’s local media assets, posted $1.9 billion in earnings with $310 million in taxable income but paid no corporate tax for ten consecutive years. The report received no coverage from Murdoch-owned media outlets such as News 24 and the corporate headquarters at Holt Street in Sydney’s Surry Hills, highlighting a potential conflict of interest, as these assets remain tax-exempt despite significant earnings.
Nine Entertainment, owner of Nine Television network and several major newspapers, paid $76.7 million in tax on $290 million in profit. Seven West Media contributed $3 million on $11 million in taxable income. The contrast highlights the varying approaches that different media companies take toward tax compliance, with Murdoch’s assets remaining tax-exempt despite significant earnings. These disparities raise questions about the fairness and consistency of tax obligations across the industry.
