Key facts
- Microsoft's data center business reported $2.3 billion in Australian revenue with zero taxable income.
- Singtel, parent of Optus, generated over $8.3 billion in Australian income and paid no tax.
- Netflix paid $8.4 million in tax on $1.4 billion in Australian revenue.
- TikTok Australia paid $17.3 million in tax on $686.6 million in revenue.
- JBS Global Meat Holdings generated over $4.8 billion in revenue but paid zero tax.
- Over a quarter of large companies generating at least $100 million in Australian income paid no or little corporate tax.
Microsoft's data center business and Singtel, the parent company of Optus, are among several major corporations that generated billions of dollars in revenue in Australia but paid no income tax in the 2024-25 financial year, according to the Australian Taxation Office (ATO).
The ATO's transparency database for the 2024-25 period indicates that more than a quarter of large companies, many of them foreign-based, regularly pay no or minimal corporate tax in Australia. This includes Brazilian-owned JBS Global Meat Holdings, which reported over $4.8 billion in revenue but paid zero tax.
The ATO is required to publish tax information for entities earning at least $100 million in Australian income. While the report does not specify the reasons for zero tax payments, the ATO noted that legitimate factors such as losses, deductions, and offsets can reduce taxable income. A common practice for overseas companies is to reduce taxable income by making payments to related entities in lower-tax jurisdictions, a strategy known as profit shifting, which can attract regulatory scrutiny.
Michelle Sams, the ATO's acting deputy commissioner, stated that the agency is increasingly focused on ensuring digital businesses and supply chains contribute their fair share of tax. She added that the ATO closely examines situations where significant industries, including data centers, pay no tax to ensure tax contributions reflect economic activity.
Microsoft's data center operations in Australia generated $2.3 billion in revenue but reported no taxable income. In contrast, Microsoft's computer and software business paid $160.6 million in tax on over $9.2 billion in Australian revenue.
Netflix's Australian operation paid $8.4 million in tax on $1.4 billion in local revenue. TikTok Australia paid $17.3 million in tax on $686.6 million in revenue.
New tax rules aimed at curbing profit shifting are expected to generate substantial revenue from technology companies, though legal challenges are anticipated. Separately, revamped media bargaining laws passed in August could lead to levies on global tech platforms that do not reach agreements with Australian news outlets over journalistic content.
Singtel, which previously paid regular taxes in Australia, has shifted to reporting zero taxable income. In 2024-25, it generated over $8.3 billion in total income without paying tax. An Optus spokesperson has previously attributed its negative tax position to infrastructure investments and operating expenses.
Other significant earners that did not pay tax include New Zealand dairy giant Fonterra (over $2.4 billion in income), Sony Australia ($1.6 billion in revenue), and online retailer Kogan ($642 million in revenue).