In the 2022-23 financial year, nearly one-third of large businesses in Australia, totalling 1,253 entities, did not pay any tax, according to the Australian Taxation Office (ATO). This figure marks an increase from 831 businesses in the previous year, maintaining a steady non-compliance rate of 31%. Many companies attributed their lack of tax payments to accounting or tax losses, while others utilised previous year losses or tax offsets.
Despite these figures, the ATO noted a decline in tax avoidance, attributing this improvement to its Tax Avoidance Taskforce, which has enhanced voluntary compliance among large entities. The overall revenue collected from large corporations soared to around $100 billion, with nearly $98 billion coming from income tax—an increase of 16.7% compared to the previous year. ATO Deputy Commissioner Rebecca Saint hailed these results as a significant positive outcome for the Australian community.
The mining sector dominated tax contributions, accounting for over half of the total paid by large companies, while oil and gas firms contributed more than 10%. The ATO highlighted the corporate tax compliance in Australia as exemplary, stating that large corporates paid approximately 96% of their owed income tax for the 2021-22 period, showcasing their contributions to the nation’s economy.