A record share of Australia's large companies are paying income tax, according to the latest ATO corporate tax transparency report.
Australians expect big business to pay their fair share of tax, just like Australian workers do.
The proportion of large corporates paying no income tax has dropped to 27 per cent, the lowest level since corporate tax transparency reporting began.
Large corporates paid a combined $87.5 billion in income tax during the 2024-25 financial year.
Corporate tax paid by oil and gas companies reached $10.6 billion, the second highest contribution since CTT reporting began, and the amount of petroleum resource rent tax (PRRT) payable rose by 26 per cent.
The Albanese Labor Government has delivered significant reforms to ensure large companies and multinationals pay a fair share of tax, including legislating a 15 per cent global and domestic minimum tax, world‑leading tax transparency requirements, and tightening the rules to prevent companies using debt to artificially reduce their tax bill.
The ATO report also shows the reforms to the PRRT legislated in the Government's first term have seen the number of entities paying PRRT rise to a record 21 in 2024-25.
Australia remains a world leader for high levels of large business tax compliance with 94.3 per cent tax paid voluntarily. After ATO compliance actions that increased to 96.3 per cent.
There can be legitimate reasons for a business not to pay income tax, but there is no reason for not paying the tax that is due.
Quotes attributable to the Assistant Treasurer and Minister for Financial Services, Dr Daniel Mulino
"Paying the right amount of tax is not only a legal obligation, it's a crucial part of supporting the services and infrastructure that Australians rely on every day."
"Confidence in our tax system requires the rules being applied fairly and consistently across the economy."
"The Albanese Government continues to strengthen the ATO to do just that. I thank the ATO for its ongoing compliance and enforcement work."
Quotes attributable to Assistant Minister for Productivity, Competition, Charities and Treasury, Dr Andrew Leigh
"Labor has strengthened the rules, lifted transparency and closed loopholes. The result is a tax system where a record share of big companies are paying income tax."
