The Albanese Government welcomes the latest ATO report into corporate tax transparency which shows the percentage of large businesses paying no tax has fallen.
The report shows large corporates paid $95.7 billion in income tax during the 2023-24 financial year with an increase in tax paid by private entities.
The ATO reports Australia has some of the highest levels of tax compliance of large businesses in the world. More than 94 per cent paid voluntarily, a figure that rose to 96.3 per cent following ATO compliance actions.
That action took the total income tax take from large business to over $100 billion for the second year in a row.
The percentage of companies that didn't pay tax has decreased to 28 per cent, while the number of companies that have never paid tax has fallen slightly too.
There can be legitimate reasons for a business not to pay income tax, however there is no reason for not paying the tax that is due.
Investment by the Albanese Government of $3 billion has allowed the ATO to continue its focus on risk, assurance, and compliance strategies across multinationals, large businesses, private groups, and wealthy Australians.
It is expected that this funding, over the remainder of the program (out to 2028/29) will deliver extra tax collections from large business of at least $15 billion, or about 5 times the amount invested.
Quotes attributable to the Assistant Treasurer and Minister for Financial Services, Dr Daniel Mulino
"Ensuring companies pay the right amount of tax means the services the Australian community needs can be delivered.
"The Albanese Government has strengthened the ATO to continue to do just that.
"It is incumbent upon business to pay the tax that is due, and I thank the ATO for its continued enforcement action ."
Quotes attributable to Assistant Minister for Productivity, Competition, Charities and Treasury, Dr Andrew Leigh
"More large companies are paying tax, and fewer are paying none. That's what Australians expect - everyone playing their part.
"A fair tax system rewards the businesses that compete on innovation and service, while funding the services Australians rely on."
