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

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

How Adani Avoids Company Tax in Australia

The company's financial structure allows it to minimize taxable income in Australia. By recording significant deductions and related party payments, Adani reduces its Australian profit to zero, thereby avoiding corporate tax. This practice has drawn criticism from tax experts and climate advocates, who argue that foreign entities should have a more sensible capital structure.

Tim Buckley, director of Climate Energy Finance, stated: "This is a perfect example of why Australia needs new rules that ensure foreign entities have a sensible capital structure." He advocates for limiting deductions that businesses can make to reduce tax.

Royalties vs. Company Tax

While Adani paid $58m in royalties to the Queensland government, these are separate from company tax. Royalties are payments for extracting state-owned minerals, not income tax. Adani also paid a $33.1m royalty to a related party, further reducing its Australian taxable income.

Historical Context and Controversy

The Carmichael mine in central Queensland's Galilee Basin has been a source of fierce environmental and political debate. Despite promises that the project would fund schools, hospitals, and infrastructure for "almost a century" through taxes and royalties, Adani has never paid corporate tax since opening in 2021.

The project has also raised concerns about environmental impacts, including carbon emissions and water usage. Industry groups supporting Adani had claimed significant economic benefits, but these have not materialized in terms of tax revenue.

Key Takeaways

• Adani's Queensland coalmine generated $963.5m revenue but paid no company tax.
• Large deductions and related party expenses led to a $340.6m reported loss.
• Adani paid $58m in royalties, which are separate from corporate tax.
• Experts call for stricter rules on foreign entity capital structures to prevent tax avoidance.
• The Carmichael mine has never paid corporate tax since opening in 2021.

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