The number of large companies in Australia that pay no tax has fallen to a record low, although some industry heavyweights continue to avoid paying any dues.
The Australian Taxation Office published its tax transparency report on Thursday, finding big businesses collectively payed more than $100 billion in tax in the 2023/24 financial year.
It revealed the nation’s biggest corporate taxpayer was Rio Tinto, which forked out $6.3 billion on an income of $52.8 billion, followed by BHP, which paid $6 billion.
Optus, Virgin Australia and CSL paid zero company tax in 2023/24, the report shows.
The big four banks paid a collective $10 billion, with Commonwealth Bank paying the highest, with $3.4 billion, followed by Westpac at $2.6 billion.
Assistant Commissioner Michelle Sams says the decline reflects the efforts of a dedicated taskforce established to crack down on businesses not paying tax.
“While there are legitimate reasons why a company may pay no income tax, the Australian community can be assured we pay close attention to those who don’t pay corporate tax and ensure that they are not gaming the system,” Ms Sams said.
“Australia has some of the highest levels of tax compliance of large business in the world with 94.1 per cent of tax paid voluntarily, and 96.3 per cent after ATO’s compliance actions.”
The ATO says the total taxes received from large corporations was $95.7 billion, marking the second-highest total recorded.
Ms Sams said the mining sector paid more tax than all other sectors combined, despite weaker commodity prices which impacted profitability of major producers in the sector.
She noted private companies also recorded a rise in tax payable, with an increase of more than 20 per cent compared to the previous year.
Assistant Treasurer and Minister for Financial Services Daniel Mulino welcomed the report, saying ensuring companies pay the right amount of tax means key services can be delivered.
“It is incumbent upon business to pay the tax that is due,” he said.
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