Record Tax Payments by Large Australian Corporations

In a remarkable fiscal achievement, the Australian Taxation Office (ATO) has revealed that a record-breaking $83.8 billion in income tax was paid by large corporations during the 2021-22 financial year.

This unprecedented level of tax contribution signifies a significant financial milestone for the nation. The income tax payments from 2713 entities surged by an impressive 22% compared to the previous year, illustrating a remarkable financial turnaround for Australia's major taxpayers. Astonishingly, this figure is nearly 50% higher than two years ago, underscoring the resilience of large Australian businesses.

ATO Deputy Commissioner Rebecca Saint attributed this substantial tax payment to the nation's remarkable recovery from the COVID-19 pandemic and associated lockdowns. She pointed out that 2021-22 marked the highest income tax collection since the commencement of Corporate Tax Transparency (CTT) reporting. This accomplishment, she noted, is the result of a combination of factors, including the rapid economic rebound, elevated commodity prices, and strong voluntary tax compliance.

One notable highlight is the mining sector's significant contribution to these record tax payments. The mining industry, in line with ongoing trends, made a substantial increase in tax payments due to robust commodity markets. In fact, the mining sector's tax contribution for 2021-22 surpassed the total tax from all other sectors combined, a historic milestone in the history of the CTT report.

This accomplishment carries benefits for the Australian community, as these tax payments contribute to the nation's economic well-being. It reflects the resilience of the business sector and its commitment to fulfilling tax obligations, ultimately benefiting the broader Australian community.

Moreover, the achievement underscores the effectiveness of the Tax Avoidance Taskforce, which has played a vital role in fostering better voluntary compliance and implementing decisive compliance actions. The report showcased a significant decrease in entities paying no income tax, dropping from 36% in 2013-14 to 31% in 2021-22, reflecting the Taskforce's sustained impact since the report's inception.

In conclusion, the record-breaking income tax payments by Australia's large corporations signify a significant financial milestone. These contributions highlight the resilience of the business sector and its commitment to fulfilling tax obligations, ultimately benefiting the broader Australian community.