Ore-some numbers: WA’s mega tax contribution

More than $27 billion was paid in company tax by 10 businesses linked to Western Australia in the year to June 2021, demonstrating the massive contribution made by the state’s industries.

That’s nearly 40 per cent of the national business tax take from just 10 entities. 

The latest transparency data from the Australian Taxation Office shows 10 businesses with substantial operations or headquarters in WA among the top 20 contributors nationally.

Australia’s biggest taxpayers are BHP Group ($7.3 billion) and Rio Tinto ($6.2 billion).

Many of the companies assessed have complex tax structures, where subsidiaries or other entities pay part of the bill, sparking confusion about how much is paid.

The Jimblebar iron ore business, operated by BHP, paid $2.5 billion in tax additional to the parent entity, while Rio Tinto’s Robe River chipped in $576 million to the nation’s coffers.

Gina Rinehart’s empire paid more than $3 billion between Roy Hill Holdings and Hancock Prospecting.

Fortescue Metals Group paid $5.8 billion.

Woodside Energy said it had paid about $390 million in company tax in that financial year, while the company’s total bill for taxes and royalties would be $2 billion this calendar year.

“Woodside is proud of the contribution we make to the communities where we live and work and we do the right thing when it comes to paying our taxes,” chief executive Meg O'Neill said. 

“As one of Australia’s largest taxpayers, Woodside is subject to the ATO’s Justified Trust program, designed to assure that companies are paying the right amount of tax.

“We actively participate in several ESG rating indices and our transparent approach to tax reporting is reflected in our inclusion within the leading group, relative to our industry peers.

“Woodside values the trust of all our employees, joint venture partners, contractors, suppliers and customers, and we know that transparency and accountability are core to maintaining that trust.”

The ATO said the data released today covered 2,468 entities which paid $68.6 billion combined.

That was up 19.8 per cent from the prior year.

Australia had one of the highest levels of tax compliance in the world, the ATO said, at 96 per cent.

“These results demonstrate there are high levels of tax compliance amongst our largest corporates,” ATO deputy commissioner Rebecca Saint said.

Every year, the release of data sparks debate about companies which do not pay tax.

Some are part of bigger groups where tax is paid through other entities, while others are loss-making.

The ATO said 32 per cent of companies on the list paid no tax, down from 36 per cent in the 2016 financial year.

“We pay close attention to companies not paying tax,” Ms Saint said. 

“We hold those companies that report continual year-on-year losses to an additional layer of scrutiny.

“While it’s true some large entities paid no income tax, we’re seeing through our justified trust program that there are high levels of compliance by these entities, and taking decisive action where there’s not.”