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On Thursday 8 December 2017, the Australian Tax Office published a report containing the total income, taxable income and tax payable for more than 2000 corporate tax entities for the 2015-16 year.
The report shows EnergyAustralia had total revenue of $7.8 billion and no taxable income in the period under review.
Our performance reflects how the power generation sector is underpinned by assets that were built last century. Until very recently, demand for centralised generation – from large, older power stations – has declined.
Historically, an excess of supply in a highly competitive market has led to very modest, and sometimes negative, returns. In recent years that has meant low profitability, and no corporate tax.
After applying tax losses accumulated in prior years and business costs such as wages, marketing to customers, the expense of running power stations and call centres, EnergyAustralia had no taxable income for the period.
EnergyAustralia complies with all relevant taxation laws and pays all the tax it is required to. We were the first energy utility in Australia to register for the government’s Voluntary Tax Transparency Code. Our 2017 report is available here.
Corporate tax is just one way in which a business contributes to the community. For example, to the end of October 2017 EnergyAustralia had paid close to $12.5 million in payroll tax.
EnergyAustralia also contributes to the broader economy as an employer of around 2,500 people in Australia and as a customer for the good and services of hundreds of other businesses around the country. We spend more than $700 million each year on goods and services, more than 97% of which is spent in Australia.
But most importantly, we provide reliable, affordable energy for our customers while leading the shift to a cleaner energy future for all Australians.
We hope that our business performance continues to improve, and our contribution to the community in line with it; that would include the corporate tax we pay.