The Business Council of Australia’s members have decided that, if the electorate won’t give them a 25% tax rate, they’re only going to pay that anyway.
The 2016-17 corporate tax data released by the Australian Tax Office yesterday shows, on average, the BCA membership paid just 25.3% in tax on taxable income. That’s only marginally up on the 24-25% BCA members have paid in years past, despite Treasurer Josh Frydenberg issuing a media release yesterday insisting the “government’s plan to ensure big businesses pay their fair share of tax is working”.
In fact, the government’s claims to be increasing the multinational tax take look ridiculous: 43 of the BCA’s members — five more than in years past — paid no tax at all despite earning income of nearly $125 billion. Non-payers include energy giants Shell, Exxon and Chevron, as well as Santos, Energy Australia, Stockland and one of the country’s top monopoly gougers, Sydney Airport — all of them reported no taxable income at all.
Others, including News Corp, Qantas, Origin, BAE and Amcor reported tens of billions in taxable income but were able to avoid tax by using tax losses from previous years — even though Qantas and Origin were both in the top 20 income-generating companies reported by the ATO. Another four BCA members paid less than 10% tax; another eleven paid between 10-20%.
However, 17 BCA members paid the full rate on their taxable income, shelling out 29.99% or more, including Credit Suisse, Tata Consulting, Microsoft, BHP’s iron ore division, Deutsche Bank, Citbank and JB Hifi. Bear in mind, however, that their taxable income may be dramatically lower than it should be due to profit-shifting and other base erosion techniques — the total taxable income of those paying the full rate was just 18% of their total income.
Out of the all companies reported by the ATO — which we’re only able to see because of changes to reporting laws introduced by Labor right before they lost office, and which the Coalition tried to block — including BCA members, taxable income amounted to 10% of total income.
12 thoughts on “Business Council members lead the way in not paying tax”
PhillPhe
December 14, 2018 at 12:29 pmEmma A come back all is forgiven .
PhillPhe
December 14, 2018 at 12:33 pmDont want to here the term ” DOLE BLUDGER ” till they sort this one out .
Bill Hilliger
December 14, 2018 at 1:30 pmAh, that pernicious NewsCrap organisation never pays tax. Indeed the LNP government Muppets directly or indirectly gift hard working Australian tax payer moneys (last time $30 million) to NewsCrap so the maggots that work for can continue to spew their pro LNP bile.
klewso
December 14, 2018 at 1:38 pmBut Frydenberg is right isn’t he? They are paying their “fair share of tax” – as judged by them and their political servants?
We plebs are used to pitching in to make up their aggregated short-fall (some of it anyway) – and going without the services such shortfall don’t deliver.
mary wood
December 14, 2018 at 1:49 pmHow about we give them a tax cut, but change the system so that tax is levied on turnover in this country with zero deductions?
AR
December 15, 2018 at 1:53 amSorry, I didn’t see your suggestion before posting mine.
Desmond Graham
December 14, 2018 at 2:55 pmThanks for the analysis- invest in corporations that have paid the lowest amount of taxes – these will be the best managed companies. Reckless government spending is fuelled by taxes [that is why Australia’s middle class has been gutted] , really how many unelected Commissioners’ does Australia need – one is announced weekly – When was the last time a politician announced spending cuts – corporations routinely do.
So all the corporations mentioned have paid the most taxes , they collect and the PAYG taxes they supply the wages for employees , they pay Payroll taxes, property taxes , the fuel taxes, Royalties etc. Yet they still mange to have surplus money called profits. and in the years when they have losses they still pay all the taxes but don’t get money themselves- so why shouldn’t they recoup the money lost in bad years . No one expects journos, or anyone to work pro bono just because it is a bad year. So back to my original point – invest in a profitable company that pays the required minimum tax as required by the tax laws – that is a well managed company.
AR
December 15, 2018 at 1:56 amWas this satire or are you on the eggnog early?
R. Ambrose Raven
October 19, 2019 at 9:33 amPossibly Desmond Graham runs a Balinese labour hire company that supplies labour to hotels hosting Australiasn tourists, with wages and working conditions that match BCA corporate tax generosity.
brian crooks
December 14, 2018 at 4:21 pmjust watch the non tax paying corporates reward their coalition stooges with lush made up high paying jobs after the voters throw them out in may, courtesy of the dumb shareholders of course, its them that pay the bill, but they seem too stupid to realise it.
AR
December 15, 2018 at 1:51 amTax turnover – couldn’t be simpler.
Lee Tinson
December 15, 2018 at 5:54 pmI often wondered what the furore was about with lowering the tax rate. It won’t cost us anything because practically none of them have ever paid that much in tax anyway.
Another fraud by Fraudenberg and Muppetson.