Microsoft’s datacentres and Optus owner among firms paying zero tax on billion-dollar Australian revenues
Summary
Several large companies, including Microsoft’s datacentre division and Singtel (owner of Optus), earned billions in Australia but paid little or no income tax. The Australian Taxation Office reported that more than a quarter of big companies, often foreign-owned, regularly pay zero or very low corporate tax in Australia.Key Facts
- Microsoft’s datacentre business earned $2.3 billion in Australia but reported no taxable income for that part of its operations.
- Microsoft’s other business units paid $160.6 million in tax on $9.2 billion in revenue.
- Singtel, which owns Optus, earned $8.3 billion but paid no tax in Australia during 2024-25.
- Netflix paid $8.4 million in tax on $1.4 billion revenue, and TikTok paid $17.3 million on nearly $687 million revenue.
- Other companies paying no tax despite large earnings include JBS Global Meat Holdings ($4.8 billion), Fonterra ($2.4 billion), Sony Australia ($1.6 billion), and Kogan ($642 million).
- The Australian Taxation Office said companies might pay zero tax due to losses, deductions, or profit shifting (sending profits to lower-tax countries).
- The ATO is increasing efforts to ensure digital businesses and supply chains pay fair taxes reflecting their economic activity in Australia.
- New laws aim to levy global tech companies for using Australian news content without paying media outlets, but legal challenges are expected.
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