Adani to Pay No Company Tax Despite $1 Billion Revenue
Wanderstayfinder.com – Adani to pay no company tax despite generating nearly $1 billion in revenue from its Queensland coal mining operations over the past year. According to financial accounts, the Carmichael thermal coal project utilized substantial costs—including production expenses and related party logistics—to offset its $963.5 million revenue during the 12 months ending 31 March. This accounting approach resulted in a recorded $340.6 million loss for the year, effectively eliminating any corporate tax liability.
Historical Tax Avoidance Pattern
Analysis by Guardian Australia of company accounts reveals that the mining project has never paid corporate tax since opening in 2021, despite previous commitments from Adani that operations would contribute billions of dollars in taxes and royalties to the Australian economy. Adani Mining’s financial statements indicate that it paid $58 million in royalties during the 12-month reporting period. These royalties represent payments made to governments for extracting state-owned mineral resources.
Additionally, Adani paid a $33.1 million royalty to a related party entity. Tim Buckley, former investment banker and director of Climate Energy Finance, explained that the company’s structure enables it to avoid paying corporate tax in Australia. “This is a perfect example of why Australia needs new rules that ensure foreign entities have a sensible capital structure,” Buckley stated, noting his advocacy for changes that would cap the amount of deductions businesses can claim to reduce their tax burden.
Project Approval and Community Impact
Adani’s project approval in central Queensland’s Galilee Basin faced intense opposition, establishing a new jurisdiction for thermal coal extraction while raising significant environmental concerns. Industry groups supporting the conglomerate had previously claimed that Adani’s project would fund schools, hospitals, and other infrastructure for “almost a century” through mining taxes and royalties. A spokesperson for Adani Mining confirmed that the project provided direct employment for more than 1,400 Queenslanders during the last financial year.
“We comply fully with our state and commonwealth taxation and royalty obligations and our statutory profit and tax outcomes are determined in accordance with Australian accounting standards and the corporations act,” the spokesperson said.
The Carmichael operations commenced during a particularly prosperous period for coal miners. Russia’s invasion of Ukraine triggered a surge in global energy prices throughout 2022, benefiting coal producers worldwide.
Coal prices continue to receive support from energy supply constraints stemming from conflict in the Middle East. The Adani-controlled Abbot Point port business, officially named North Queensland Export Terminal, also did not pay any company tax over the most recent 12-month reporting period, despite earning $356.6 million. Various operating expenses resulted in a $6.8 million loss, meaning no tax was payable.
The terminal business’s chief executive, Mark Smith, explained that accounts were prepared in accordance with Australian accounting standards and reflect the capital-intensive nature of owning and operating major export infrastructure. “The terminal plays an important role in supporting Queensland trade and we remain focused on delivering safe, reliable, and efficient export services for our customers,” Smith said.
Frequently Asked Questions
Why is Adani not paying corporate tax in Australia? Adani utilizes substantial production and logistics costs, along with related party payments, to offset its revenue. This accounting approach creates a reported loss that eliminates corporate tax liability under Australian accounting standards.
How much has Adani paid in royalties since 2021? In the most recent 12-month period, Adani paid $58 million in government royalties and an additional $33.1 million to a related party, totaling $91.1 million in royalty payments.
Does Adani’s port terminal also pay no company tax? Yes, the North Queensland Export Terminal (Abbot Point) did not pay company tax despite earning $356.6 million, as operating expenses resulted in a $6.8 million loss.
How many jobs does the Adani project provide in Queensland? The project provides direct employment for more than 1,400 Queenslanders according to Adani Mining’s statements.
