Adani Pays No Tax Despite $1bn Revenue from Queensland Coalmine 2026

Adani pays no company tax despite generating nearly $1bn in revenue from its Queensland coalmine, according to recent financial accounts. The Indian conglomerate's Carmichael thermal coal operations reported $963.5m in revenue for the 12 months to 31 March, but offset this with large production and related party logistics expenses, resulting in a $340.6m loss and eliminating its tax bill.

How Adani Avoided Company Tax on Queensland Coalmine Revenue

The company's accounts reveal that Adani Mining paid $58m in royalties to the Queensland government, but no corporate tax. Royalties are payments for extracting state-owned minerals, separate from income tax. Adani also paid a $33.1m royalty to a related party, further reducing its taxable income.

Tim Buckley, director of Climate Energy Finance, stated that the company was structured to avoid corporate tax in Australia. He highlighted the need for new rules to limit deductions for foreign entities, calling this a "perfect example" of why Australia must reform its tax system.

Deductions and Related Party Transactions

Adani's financial structure includes significant production costs and related party logistics expenses. These deductions, combined with the related party royalty, pushed the project into a loss. This is despite the company generating substantial revenue from coal mining in Queensland.

The Carmichael mine, located in the Galilee Basin, has been operational since 2021. Guardian Australia analysis shows that Adani has never paid corporate tax on this project, contradicting earlier promises that it would contribute billions in taxes and royalties.

Comparison: Adani's Tax Payments vs. Royalties

Key Takeaways from Adani's Tax Avoidance

• Adani pays no company tax despite $1bn revenue from Queensland coalmine.
• Large deductions and related party expenses offset all profits.
• Royalties are paid, but they are not corporate tax.
• Experts call for stricter rules on foreign entity capital structures.
• The project provides 1,400 direct jobs but has not delivered promised tax revenue.

Impact on Australia's Tax System

Adani's tax avoidance has sparked debate about Australia's corporate tax rules. The company's structure allows it to shift profits through related party transactions, reducing its taxable income. This is a growing concern as multinational corporations use similar strategies.

Industry groups had claimed the project would fund schools and hospitals for "almost a century" through taxes and royalties. However, the reality is that no corporate tax has been paid, raising questions about the effectiveness of current regulations.

What Can Be Done?

Experts like Tim Buckley advocate for limiting deductions that businesses can claim to reduce tax. Such reforms would ensure that foreign entities have a sensible capital structure and pay their fair share. The Australian government is under pressure to address these loopholes.

Adani Mining's spokesperson emphasized that the company complies with all state and commonwealth taxation obligations. They noted that the project supports over 1,400 Queensland jobs, but critics argue that tax avoidance undermines the public benefit.

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