Key facts
- Adani's Carmichael coal operations generated $963.5 million in revenue in the past financial year.
- The company recorded a $340.6 million loss, resulting in no corporate tax liability.
- The project has not paid corporate tax since its opening in 2021.
- Adani Mining paid $58 million in royalties to the government and $33.1 million to a related party.
- The Adani-controlled North Queensland Export Terminal also paid no company tax on $356.6 million in revenue.
Indian conglomerate Adani will pay no company tax despite generating nearly $1 billion in revenue from its Carmichael thermal coal operations in Queensland over the past year. Financial accounts reveal that significant costs, including production and related party logistics expenses, offset the $963.5 million in revenue for the 12 months ending March 31. This resulted in a recorded loss of $340.6 million for the year, erasing any corporate tax liability.
Analysis of company accounts shows the Carmichael project has not paid corporate tax since it began operations in 2021, despite previous assurances from Adani about substantial tax contributions. Adani Mining's accounts indicate that $58 million in royalties were paid to the government, along with an additional $33.1 million royalty to a related party.
Tim Buckley, director of Climate Energy Finance, suggested the company's structure is designed to avoid paying corporate tax in Australia, advocating for regulatory changes to limit deductions for foreign entities. The Carmichael project's development in the Galilee Basin has been a subject of environmental concern and debate.
Industry groups had previously claimed the project would generate billions in taxes and royalties for infrastructure development. A spokesperson for Adani Mining stated that the company fully complies with its taxation and royalty obligations and that its profit and tax outcomes are determined according to Australian accounting standards. The project provided direct employment for over 1,400 Queenslanders in the last financial year.
During the reporting period, the Adani-controlled North Queensland Export Terminal, which handles coal exports, also paid no company tax. Despite earning $356.6 million in revenue, various operating expenses led to a $6.8 million loss. The terminal's chief executive, Mark Smith, noted that the accounts reflect the capital-intensive nature of the infrastructure and its role in supporting Queensland trade.