It’s giving tax-haven energy, but on a massive scale. Fresh data from the Australian Taxation Office (ATO) for 2024-25 shows that more than one-quarter of large corporations operating in Australia are paying little to no corporate income tax, despite pulling in billions.
The Breakdown
Among the companies turning over massive revenue while reporting zero taxable income is Microsoft’s local datacentre arm, which brought in $2.3 billion. Meanwhile, Singtel—the parent company of Optus—reported zero tax on $8.3 billion in income. Other heavy hitters like JBS Global Meat Holdings ($4.8 billion) and Fonterra ($2.4 billion) also walked away with zero tax bills.
Netflix and TikTok are also on the list, though they paid small amounts—$8.4 million and $17.3 million, respectively—relative to their hundreds of millions in local turnover.
Why it happens
Real talk: the ATO notes there can be legal reasons for this. Companies often utilize deductions, infrastructure investment offsets, or report operational losses to minimize their tax burden. A common strategy involves "profit shifting," where earnings are moved to related entities in jurisdictions with lower tax rates. While legal, it definitely has regulators side-eyeing these business models.
Acting deputy commissioner Michelle Sams stated the agency is keeping a close watch on sectors like datacentres, ensuring tax payments actually reflect economic activity on the ground.
Why it matters
The ATO is working on new rulings to clamp down on profit shifting, but industry experts expect those moves will be met with significant legal challenges. With new media bargaining laws also hitting the books, the government is clearly trying to force big tech to pay their share, but for now, the status quo is keeping these massive tax gaps alive and well.
