One-third of companies paid no tax in 2019-20, ATO transparency report shows

One-third of companies paid no income tax in 2019-20, according to the Australian Tax Office — a figure that has barely budged in almost seven years.

Among the big companies named in its seventh annual report on corporate tax transparency released on Friday as paying zero tax were ExxonMobil, Chevron and Graincorp.

The data showed resources companies doing much of corporate Australia’s heavy lifting: BHP paid $4.5 billion from taxable income of $18.7b; Rio Tinto paid $5.2b from $17.8b; Fortescue Metals Group paid $2.92b from $9.83b; Mineral Resources paid $521.4m from $1.73b and South32 paid $36.3m against $591.6m.

Woodside Petroleum paid $176.8m from taxable income of $2.17b; Hancock Prospecting paid $652.7m from $2.17b and Roy Hill Holdings paid $643.7m from $2.14b, while WA-headquartered conglomerate Wesfarmers paid $896.1m from $3.2b income.

The major banks were a strong source of revenue, with Commonwealth Bank paying $3.26b from $11.1b taxable income; Westpac stumped up $2.55b from $8.65b; National Australia Bank paid $1.7b from $5.87b and ANZ paid $1.58b from $5.37b.

Big tech companies were by comparison much smaller. Against $9.9b total income, Apple reported taxable income of $391m and paid $117m tax. Google reported total income of $1.25b, taxable income of $225m and paid $56.8m tax, while Afterpay reported $359m total income but paid no tax and declared no taxable income.

The ATO claimed the long-term trend was of increased compliance, pointing to a “high assurance” rating of 6 per cent in 2019 to 49 per cent.

“Corporates are placing a higher value on tax compliance, driving consistent and willing voluntary participation,” deputy commissioner Rebecca Saint said.