Adani avoids company tax despite $1bn revenue from Queensland coal mine

Indian conglomerate Adani has generated almost $1 billion in revenue from coal mining in Queensland over the past year, yet will pay no company tax in Australia.

Financial accounts show the Carmichael thermal coal operations offset $963.5 million in revenue for the 12 months to 31 March with substantial costs, including production expenses and logistics fees paid to related parties. This left the project with a recorded loss of $340.6 million for the year, wiping out its tax bill.

Analysis of company accounts by Guardian Australia reveals that the mining project has never paid corporate tax since it began operations in 2021, despite earlier pledges from Adani that it would channel billions of dollars in taxes and royalties into the economy.

According to the accounts, Adani Mining paid $58 million in royalties to the government for extracting state-owned minerals, plus a further $33.1 million royalty to a related party.

Tim Buckley, a former investment banker and director of Climate Energy Finance, said the company was structured specifically to avoid corporate tax in Australia. He advocates for new rules that would limit the deductions businesses can claim to reduce their tax obligations.

The Galilee Basin project in central Queensland was heavily contested when approved, opening a new frontier for thermal coal extraction and raising environmental concerns. Industry supporters had claimed the mine would fund schools, hospitals, and other infrastructure for “almost a century” through mining taxes and royalties.

A spokesperson for Adani Mining said the project provided direct jobs for more than 1,400 Queenslanders last financial year and stressed full compliance with all state and commonwealth taxation and royalty obligations.

The Carmichael operations launched during a boom time for coal miners, as Russia’s invasion of Ukraine sent global energy prices soaring in 2022. Coal prices are now further supported by energy supply constraints resulting from conflict in the Middle East.

Adani’s Abbot Point port business, named North Queensland Export Terminal, also paid no company tax for the most recent reporting period, despite earning $356.6 million. Operating expenses led to a $6.8 million loss, resulting in no tax payable.

Terminal chief executive Mark Smith said the accounts were prepared in line with Australian accounting standards and reflect the capital-intensive nature of owning and operating major export infrastructure.