Australian large corporates pay $87.5B tax
- Big Australian businesses paid $87.5 billion in corporate tax during 2024–25, driven by major mining firms.
- Overall tax revenue fell by about $10 billion compared to recent record highs due to weaker commodity prices.
- The tax office stated that strong voluntary compliance and high transparency keep Australia leading global corporate tax collection.
Mining heavyweights led by BHP (ASX:BHP) and Rio Tinto (ASX:RIO) contributed the largest share of Australia's $87.5 billion corporate tax haul in 2024–25 despite falling commodity prices.
Total tax revenue dropped by about $10 billion from the previous two years, when global energy prices spiked due to the war in Ukraine.
"It really continues to show that large corporates continue to pay very large amounts of tax, and that reflects strong levels of voluntary compliance," said Australian Taxation Office Acting Deputy Commissioner Michelle Sams.
Retailers led by Coles (ASX:COL) and Woolworths (ASX:WOW) formed the second-largest tax-paying sector at $22.1 billion, while finance generated $17.8 billion and manufacturing, construction, and agriculture added $8.3 billion.
Petroleum resource rent tax collections rose to $1.87 billion from $1.48 billion in 2023–24 following new deduction caps introduced by Treasurer Jim Chalmers.
The Australian Taxation Office stated that 27% of large companies paid no income tax in 2024–25, which represents the lowest proportion recorded since reporting began in 2014.
Tax officials cited legitimate factors for zero-tax outcomes, including company operating losses, carried-forward deductions, and research and development tax offsets.
