Major corporations, including Microsoft's datacentre business and Optus parent Singtel, are generating billions of dollars in revenue in Australia while paying zero income tax. This information comes from the Australian Taxation Office (ATO).
The ATO's transparency database for 2024-25 indicates that more than one-quarter of large companies, often based overseas, regularly pay little or no corporate tax in Australia. Netflix is also noted for paying tax on only a small fraction of its turnover.
Microsoft's datacentre business, for example, 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 on over $9.2bn in revenue in Australia.
Singtel, which owns Optus, generated over $8.3bn in total income in 2024-25 but paid no tax, a change from its status as a regular taxpayer before 2020. An Optus spokesperson has previously attributed its negative tax position to infrastructure investments and operating expenses.
The ATO's acting deputy commissioner, Michelle Sams, stated the agency is increasingly focused on ensuring digital businesses and supply chains pay their share of tax. The ATO noted that there could be legitimate reasons for companies paying zero tax, such as making a loss or using deductions and offsets.