On 12 December 2019 the Australian Tax Office published a report containing tax information for more than 2000 corporate tax entities for the 2017-18 income year.
The report shows EnergyAustralia had total revenue of $7.6 billion, taxable income of $367 million for the 2017 financial year and that it paid $68 million of corporate tax (after non-refundable tax offsets).
Chief Financial Officer Alastair McKeown said the company’s financial performance reflected the benefit of a program begun in 2014 to improve operational performance after years of low – or no –profitability, and no corporate tax payable.
“Better financial results mean we pay more tax, but they also generate important funds that we’re using to enhance our existing assets and explore new projects required to underpin a modern, cleaner energy system,” Alastair said.
This year EnergyAustralia committed to investments worth more than $100 million. Two key investments were at the Hallett power station in South Australia adding 30-megawatts (MW) to the system, in addition to an upgrade at Mt Piper in New South Wales for 60 MW with no additional coal.
Based on EnergyAustralia’s size and income, it is classified a ‘key taxpayer’ by the ATO. This means EnergyAustralia works closely with the ATO on tax affairs to ensure the business is paying all the tax it is required to.
EnergyAustralia was the first energy utility in Australia to register for the government’s Voluntary Tax Transparency Code in 2017. The third edition EnergyAustralia Tax Contribution Report, for the 31 December 2018 results is available here.
Corporate tax is just one way in which a business contributes to the community. For example, EnergyAustralia paid close to $15.5 million in payroll tax for the 2017-18 income year. The company employs around 2,500 people in Australia, providing income tax revenue, and does business with hundreds of service providers around the country.
Also, EnergyAustralia outlays more than $700 million each year on goods and services – more than 97 per cent of which is spent in Australia.