Microsoft's datacentres, Singtel and Netflix among firms paying near-zero tax in Australia
New figures from the Australian Taxation Office show several multinational corporations, including Microsoft's datacentre arm and Optus owner Singtel, earned billions of dollars in Australian revenue while paying little to no income tax.
The Australian Taxation Office's transparency database for the 2024-25 financial year shows more than a quarter of large companies operating in Australia, many foreign-owned, routinely pay no or minimal corporate tax despite substantial revenues.
Microsoft's datacentre business earned $2.3bn in Australian revenue over the year but reported no taxable income. By contrast, Microsoft's computer and software division paid $160.6m in tax on revenue exceeding $9.2bn.
Singtel, the parent company of telecom operator Optus, was once a consistent taxpayer before 2020 but has since repeatedly reported zero taxable income. In 2024-25 it generated more than $8.3bn in total income without paying any tax. An Optus spokesperson has previously attributed the company's negative tax position to heavy infrastructure investment and operating costs.
Other major earners that paid no tax include Brazilian-owned JBS Global Meat Holdings, which generated over $4.8bn in revenue; New Zealand dairy company Fonterra, with more than $2.4bn in income; Sony Australia, with $1.6bn in revenue; and online retailer Kogan, with $642m.
Netflix's Australian arm, which regularly pays little tax locally, handed over $8.4m after generating more than $1.4bn in revenue. TikTok Australia paid $17.3m in tax on $686.6m in revenue.
The ATO noted there can be legitimate reasons for paying no tax, such as recording a loss or applying deductions and offsets, but acknowledged that foreign companies often lower their taxable income through payments to related entities in lower-tax jurisdictions — a practice known as profit shifting.
Acting deputy commissioner Michelle Sams said the agency is paying closer attention to digital businesses and supply chains, particularly in the datacentre sector, to ensure tax paid reflects the real economic activity occurring in Australia. A new ATO ruling targeting profit shifting is expected to generate significant revenue from technology firms, though legal challenges are anticipated. Parliament also passed revised media bargaining legislation in August, paving the way for levies on global tech platforms that fail to reach agreements with Australian news organisations over the use of their content.
