Microsoft, Singtel and Netflix Among Multinationals Paying Zero Tax on Billions in Australian Revenue
The Australian Taxation Office has published its 2024-25 transparency database, identifying a significant number of large multinational corporations that generate billions of dollars in revenue within the country while reporting zero or minimal corporate income tax. The list includes the local operations of Microsoft, Netflix, and Singtel, the parent company of Optus, highlighting ongoing scrutiny over how global entities structure their taxable presence in Australia.
According to the ATO, more than one-quarter of the largest companies, many of which are headquartered overseas, regularly pay little or no corporate tax in Australia. This requirement to publish data applies to all entities generating at least $100 million in Australian income, as mandated by parliament. While the agency does not typically release such information for individuals or smaller firms, the transparency initiative aims to provide insight into the tax contributions of major economic players.
Micahel Sams, the acting deputy commissioner of the ATO, stated that the agency is increasingly focused on ensuring that digital businesses and complex supply chains contribute their fair share. She emphasized that the regulator looks closely at industries where no tax is being paid, particularly sectors like datacentres, to ensure that the level of taxation reflects the actual economic activity occurring within the country. Sams noted that the practice of profit shifting, where overseas companies reduce taxable income by making payments to related entities in lower-tax jurisdictions, attracts significant regulatory scrutiny.
Among the specific cases detailed in the report, Microsoft’s datacentre business generated $2.3 billion in revenue from Australia during the financial year but reported no taxable income. In contrast, the company’s broader computer and software division paid $160.6 million in tax after generating more than $9.2 billion in revenue locally. Netflix’s local operation, which has a history of paying low taxes relative to its turnover, contributed $8.4 million to the ATO after recording more than $1.4 billion in local revenue. TikTok Australia also appeared in the data, having paid $17.3 million in tax following the recording of $686.6 million in revenue.
Singtel, the owner of Optus, transitioned from being a regular taxpayer before 2020 to a company that now regularly reports zero taxable income. In the 2024-25 period, it generated more than $8.3 billion in total income without paying tax. An Optus spokesperson previously attributed this negative tax position to substantial infrastructure investments and operating expenses. Similarly, JBS Global Meat Holdings, owned by Brazilian interests, generated more than $4.8 billion in revenue but paid zero tax, continuing a recurring pattern for the global food company.
Other major earners included Fonterra, which recorded more than $2.4 billion in total income without paying tax, Sony Australia with $1.6 billion in revenue, and online retailer Kogan with $642 million. The ATO noted that while individual reasons for zero tax payments were not always provided, legitimate explanations could include operating losses or the use of deductions and offsets to lower taxable income. However, new measures are expected to impact these figures, including an ATO ruling designed to clamp down on profit shifting, which is anticipated to raise significant sums from technology companies despite facing potential legal challenges. Additionally, revamped media bargaining laws passed in August clear the way for levies on global tech platforms that fail to negotiate deals with Australian news outlets regarding the use of their journalism.
This report was produced in the Europe Brief News newsroom.
