Australian tax office reports slight dip in companies paying zero tax

The Australian Taxation Office’s latest transparency report shows 1,149 large companies paid no income tax for the 2024/25 financial year, reducing the share of zero-tax payers to 27% from 28% the previous year. A total of 4,299 entities with more than $100 million in reported income contributed $87.5 billion in tax, $8.2 billion less than in 2023/24, largely due to weaker profitability in the mining sector as coal, lithium and iron-ore prices fell.

While the ATO highlighted that most big firms are meeting their obligations, it noted that zero tax does not automatically signal non-compliance, as losses or deductions can offset liability. Oil and gas firms collectively paid $10.6 billion, with Chevron contributing $2.9 billion, but Santos recorded no tax for an eleventh consecutive year despite $5.1 billion in income. Rio Tinto led the list with $5.2 billion in tax, followed by BHP at $3.9 billion and Commonwealth Bank at $3.8 billion. The government praised recent compliance efforts and tightened rules to curb debt-driven tax avoidance.