More Than 1,000 Large Companies Paid No Tax in Australia, ATO Reveals

Proportion of nil-tax entities lowest since transparency regime began, but ATO flags new focus on AI firms and offshore hubs

By LineZotpaper

Published1 October 2026

Read Time2 min

Sources2 outlets

The Australian Taxation Office's 10th corporate tax transparency report reveals that almost 30 per cent of large companies paid no income tax in the 2024-25 financial year, though this represents the lowest proportion since reporting began in 2013-14.

The Australian Taxation Office has released its 10th corporate tax transparency report, covering 4,299 entities. Of these, 1,149 entities (27 per cent) paid no income tax for the 2024-25 financial year, while 3,150 (73 per cent) did pay tax. The report was published against an economic backdrop of slow growth, declining commodity prices and high interest rates, which contributed to total tax payable falling by $8.2 billion (8.6 per cent) to $87.5 billion compared with the previous year.

ATO acting deputy commissioner Michelle Sams said a nil tax result does not automatically indicate wrongdoing. "Many large businesses legitimately pay no income tax but we continue to scrutinise these outcomes closely, as the community expects," she said. The report notes that companies may pay no tax due to accounting losses or by claiming tax offsets.

The 27 per cent figure is the lowest since the transparency reporting regime began in 2013-14, when 36 per cent of companies paid no tax. Ms Sams said the ATO's Tax Avoidance Taskforce, established in 2016, has collected $36 billion in additional tax revenue from multinationals and large public and private businesses. The agency maintains an active program of review and audit, with 100 to 150 cases under examination at any one time.

Australia is among around 140 countries that have signed up to the OECD Global Minimum Tax deal, which imposes a 15 per cent minimum rate on multinational profits. The standard corporate tax rate in Australia is 30 per cent. The ATO is increasingly focusing its compliance efforts on companies using offshore financing and marketing hubs, and on businesses in the artificial intelligence sector, particularly concerning data centre investments.

Analysis

Why This Matters

The persistent nil-tax outcomes among over a quarter of large entities raise questions about equity and loopholes in the corporate tax system.
The $8.2 billion drop in tax payable comes as government revenue faces pressure from an economic slowdown and high interest rates.
The ATO's explicit focus on AI and digital economy businesses signals a new and intensifying frontier in corporate tax compliance.

Background

The ATO's corporate tax transparency report has been published annually since 2013-14. The latest edition covers tax returns lodged for the 2024-25 year, meaning the data lags by two years. The OECD Global Minimum Tax deal is an international agreement targeting profit shifting by large multinationals, imposing a 15 per cent minimum rate.

Key Perspectives

ATO (Michelle Sams): Maintains that zero-tax outcomes are often legitimate, and that the agency's active audit program ensures rigorous oversight. The Tax Avoidance Taskforce has raised $36 billion since 2016. Multinationals and AI Companies: Face increased scrutiny, particularly around tax structuring using offshore marketing and financing hubs, and investments in capital-intensive data centres. Tax Justice Advocates: Would likely argue that 27 per cent of large entities paying nothing, combined with a multi-billion dollar revenue decline, demonstrates systemic weaknesses that the 15 per cent global minimum rate only partially addresses.

What to Watch

The ATO's specific audit findings targeting AI and digital economy companies.
The effective implementation rate of the OECD Global Minimum Tax in Australia and its impact on future transparency reports.
Whether the next report shows a continuation of the downward trend in the proportion of nil-tax entities.

Sources

More than 1,000 large companies paid no tax in Australia, ATO reveals — Just In
More than 1,000 large companies paid no tax in Australia, ATO reveals — Latest business news