Reflecting on the substantial achievements of the Australian Taxation Office (ATO) during the past year, ATO Deputy Commissioner Rebecca Saint proudly highlighted a remarkable milestone: large corporations contributed record tax payments.
‘This is a great result for the Australian community,’ Ms. Saint stated. ‘Tax paid in 2022–23 was again the highest since Corporate Tax Transparency (CTT) reporting began. When factoring in the additional tax revenue raised by the Tax Avoidance Taskforce for the year, we collected around $100 billion from large corporates in 2022–23, underscoring the vital contribution these entities make to public finances.’
Most sectors of the economy exhibited an increase in tax liabilities compared to the previous year. Notably, as has been consistent in recent years, the mining sector was responsible for a significant boost in tax contributions this year, particularly through the oil and gas and coal sectors, which showed substantial gains.
‘Tax paid by the oil and gas sector surged to $11.6 billion in 2022–23. Some companies within this sector are now among the largest taxpayers in Australia, a remarkable achievement largely driven by a mix of rising commodity prices, the project production life cycle, and proactive ATO intervention,’ Ms. Saint noted.
‘For the second consecutive year, the mining sector has eclipsed all other sectors combined in tax payments, delivering more than five times the contributions seen in 2014–15. This demonstrates the sector’s significant role in Australia’s economy and tax landscape.’
‘Our continued efforts in enhancing tax compliance among large businesses are evident. This improvement reflects how the ATO’s Tax Avoidance Taskforce has effectively aided in boosting voluntary compliance while executing robust compliance actions,’ Ms. Saint added.
The 2022–23 report encompasses data from 3,985 corporate entities, marking a net increase of 1,272 entities. Recent changes to tax laws enabled the CTT report to now include Australian-owned private entities with total incomes ranging from $100 million to $200 million. This amendment aims to encourage voluntary compliance and enhance the transparency of large taxpayers’ tax contributions.
Deputy Commissioner Saint also reflected on the last decade of corporate tax transparency, emphasizing the significant influence this report has had on Australia’s largest taxpayers.
‘By providing transparency of corporate tax, the report has consistently enhanced accountability, stimulated voluntary compliance, and raised public awareness regarding tax responsibilities,’ Ms. Saint explained. ‘In the inaugural year of CTT, large corporates paid nearly $40 billion in tax. Over the last decade, these corporations have collectively contributed in excess of half a trillion dollars in tax, prior to any ATO compliance measures.’
‘Corporate tax compliance in Australia sets a global benchmark. These recent results reflect years of dedicated efforts from the ATO’s Tax Avoidance Taskforce, which has facilitated improved tax compliance among large businesses throughout the nation,’ Ms. Saint commented. ‘Our estimates indicate that after ATO compliance activities, large corporates remitted 96% of the income tax they were obligated to pay for the fiscal year 2021–22. The performance of these corporate groups in net tax responsibilities is among the highest across all population segments, a testament to the effectiveness of the Tax Avoidance Taskforce in ensuring accountability.’
The percentage of those entities that paid no income tax has diminished from 36% in 2013–14 to 31% in 2022–23 since the first release of the CTT report. This marks significant progress in corporate tax compliance.
‘While there can be valid reasons for a company to report no income tax, the Australian community can rest assured that we closely monitor those entities to prevent any attempts to exploit the system,’ Ms. Saint asserted.
Corporate Tax Transparency Report
The ATO is mandated by law to annually publish tax information reported by specific large corporations. This year’s tax transparency report encompasses a total of 3,985 corporate entities, segmented as follows:
- 1,646 are foreign-owned companies with an income of $100 million or more.
- 600 are Australian public entities with an income of $100 million or more.
- 1,739 are Australian-owned resident private companies with an income of $100 million or more.
The companies within the report collectively paid a staggering total of $97.9 billion in corporate income tax for the financial year 2022-23, highlighting their crucial fiscal role.
This year marks the inaugural inclusion of data for Australian-owned private entities that earn between $100 million and $200 million, a significant enhancement to the scope of the report.
It is crucial to emphasize that the data presented in the report is derived directly from tax returns, reflecting no adjustments from ATO intervention or compliance efforts following the submission of these returns.
Tax Avoidance Taskforce
The Australian Government has extended funding to the ATO to bolster the capabilities of the Tax Avoidance Taskforce. This initiative significantly enhances the ATO’s capacity to rigorously monitor tax compliance among large public and private corporations, as well as high-wealth individuals.
With the backing of the Taskforce, the ATO is presently deploying resources across various programs aimed at ensuring tax compliance among large corporate groups, including assurance programs which involve meticulous scrutiny of these businesses’ tax affairs to confirm that they meet their tax obligations accurately.
Since its inception in 2016, the Tax Avoidance Taskforce has successfully secured over $33.2 billion in additional tax revenue from multinational enterprises, as well as large public and private businesses, as of September 30, 2024.
Notes to Journalists
Images for Media
**Interview with ATO Deputy Commissioner Rebecca Saint on Corporate Tax Transparency**
**Interviewer:** Thank you for joining us today, Deputy Commissioner Rebecca Saint. It’s been a remarkable year for the Australian Taxation Office regarding corporate tax contributions. Can you share some highlights from the recent Corporate Tax Transparency report?
**Rebecca Saint:** Thank you for having me. This year has indeed been significant. I’m proud to report that in the 2022–23 fiscal year, large corporations paid a record total of around $100 billion in taxes. This is the highest we’ve seen since we began our Corporate Tax Transparency (CTT) reporting.
**Interviewer:** That’s an impressive figure. What sectors contributed most to this achievement?
**Rebecca Saint:** Most sectors reported an increase in tax liabilities, but the mining sector, particularly oil, gas, and coal, showed considerable gains. The oil and gas sector alone contributed $11.6 billion, driven by rising commodity prices and robust ATO interventions. the mining sector’s tax payments exceed all other sectors combined.
**Interviewer:** The report noted changes in how entities are included. Can you elaborate on that?
**Rebecca Saint:** Certainly. This year, our report encompassed data from 3,985 corporate entities, including a net increase of 1,272. Recent changes to tax laws now allow the inclusion of Australian-owned private entities with total incomes between $100 million and $200 million. This change aims to boost voluntary compliance and enhance transparency.
**Interviewer:** Over the past decade, how has corporate tax compliance evolved in Australia?
**Rebecca Saint:** We’ve seen a significant transformation. In the inaugural CTT year, large corporates contributed nearly $40 billion. Over the last ten years, they have collectively paid over half a trillion dollars, which demonstrates the effectiveness of our compliance measures. The percentage of entities that paid no income tax has decreased from 36% to 31%, evidence of improving compliance and accountability.
**Interviewer:** What initiatives have been most effective in ensuring compliance among large corporations?
**Rebecca Saint:** Our Tax Avoidance Taskforce has played a crucial role. Through enhanced monitoring and robust compliance actions, we’ve helped improve voluntary compliance among large businesses. Our estimates show that for the fiscal year 2021-22, large corporates remitted 96% of the income tax they were obliged to pay, which is among the highest across all sectors.
**Interviewer:** what message do you have for the Australian community regarding corporate tax responsibilities?
**Rebecca Saint:** Transparency is vital. While some companies may report no income tax for valid reasons, we monitor these entities closely to protect public finances and ensure compliance. The community can trust that we are dedicated to maintaining accountability within corporate tax contributions. Thank you!
**Interviewer:** Thank you, Deputy Commissioner Saint, for your insights and for the important work the ATO is doing to enhance corporate tax transparency.