EnergyAustralia reported an effective tax rate of 34 per cent for the 2018-19 financial year, as outlined in the Corporate Tax Transparency Report recently published by the Australian Tax Office (ATO).
The report, which covers about 2000 Australian corporate tax entities, shows EnergyAustralia paid $240 million in tax (after non-refundable tax offsets) from taxable income of $809 million and revenue of $7.3 billion.
EnergyAustralia Chief Financial Officer Alastair McKeown said he was committed to increasing community confidence in corporate Australia.
“I am proud that EnergyAustralia was the first utility to register for the government’s Voluntary Tax Transparency Code,” said Alastair.
“As a large company we expect our financials to be examined. The community can be assured that we work closely with the ATO to ensure all required taxes are paid.”
Mr McKeown said EnergyAustralia’s 2018-19 results reflect efforts to improve operational performance after years of no corporate tax payable due to low – or no – profitability.
“Better financial results mean we pay more tax, but they also generate important funds to enhance our existing assets and explore new projects required to underpin a modern, cleaner energy system,” he said.
“Of course, corporate tax is just one way that we contribute to the community. EnergyAustralia employs around 2,500 people and supports hundreds of businesses and service providers around the country.
“Each year we contribute about $15.6 million in payroll tax and we also spend around $900 million on goods and services, with more than 97 per cent spent in Australia.
“To help keep the lights on we also invest heavily in maintenance. We’ve just spent about $200 million on our assets, with major works undertaken at Yallourn, Mt Piper and Tallawarra power stations, to ensure they are ready for summer.
“We also provided extensive support for our residential and business customers struggling to pay their energy bills as a result of the coronavirus pandemic.”
The fourth edition EnergyAustralia Tax Contribution Report, for the 31 December 2019, results is available here.