More than 1,200 large Australian companies pay no tax in 2022-23, ATO report shows

More than 1,200 large companies in Australia paid no tax in the 2022-23 financial year, according to a report from the Australian Taxation Office (ATO). This represents 31 percent of the 3,985 entities that filed tax returns. The report notes that some companies reported losses or used tax offsets to reduce their tax bills to zero. The ATO has raised tax assessments against 124 companies, totaling about $2.76 billion, with most liabilities stemming from audits. The report also highlights ongoing concerns about multinational profit shifting, despite a global minimum tax rate of 15 percent being agreed upon by 140 countries. For the first time, the ATO included data on smaller private companies, increasing the report's scope by nearly 47 percent. The mining sector contributed significantly to tax revenue, with a notable increase in payments from oil and gas companies, while the petroleum resource rent tax decreased due to lower profitability.