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

Adani pays no company tax despite generating nearly $1bn in revenue from its Queensland coalmine, raising serious questions about corporate tax avoidance in Australia. The Indian conglomerate's Carmichael thermal coal operations reported a $340.6m loss for the 12 months to 31 March, effectively erasing its tax bill. This article examines how the company structured its finances to avoid paying corporate tax, the broader implications for tax policy, and what this means for Australian taxpayers.

How Adani Avoided Company Tax on $1bn Revenue

According to financial accounts analyzed by Guardian Australia, Adani Mining offset its $963.5m revenue with large costs, including production expenses and related-party logistics fees. These deductions resulted in a net loss of $340.6m, meaning the company owed no corporate tax for the year. This is not a one-off occurrence—the mining project has never paid corporate tax since opening in 2021.

The company did pay $58m in royalties to the Queensland government, which are separate from corporate tax and are payments for extracting state-owned minerals. Additionally, Adani paid a $33.1m royalty to a related party, further reducing its taxable income. Tim Buckley, director of Climate Energy Finance, called this a "perfect example" of why Australia needs stricter rules on foreign entities' capital structures.

The Role of Related-Party Transactions

Related-party transactions are a key mechanism in Adani's tax avoidance strategy. By paying logistics and royalty fees to affiliated companies, Adani shifts profits out of Australia, where they would be taxed, to lower-tax jurisdictions. This practice is legal under current Australian law but has drawn criticism from tax experts and environmental groups.

Buckley advocates for changes that would limit the amount of deductions a business can make to reduce tax. He argues that without such reforms, foreign conglomerates can continue to avoid paying their fair share, leaving Australian taxpayers to foot the bill for public services.

Comparison: Adani vs. Typical Australian Mining Taxpayer

Key Takeaways from Adani's Tax Avoidance

• No corporate tax paid despite $1bn revenue, due to large deductions.
• Related-party transactions shift profits overseas, reducing Australian tax liability.
• Royalties are not taxes—they are payments for resource extraction, not income tax.
• Policy reform needed to limit excessive deductions and ensure fair taxation.
• Environmental concerns remain, as Carmichael is a new thermal coal jurisdiction.

Implications for Australia's Tax System

This case highlights a significant loophole in Australia's corporate tax system. Foreign entities can structure their operations to avoid paying tax, undermining the principle of progressive taxation. Industry groups once claimed Adani's project would fund schools and hospitals for "almost a century" through taxes and royalties—but so far, only royalties have been paid.

Adani Mining spokesperson defended the company, stating it provides direct jobs for over 1,400 Queenslanders and complies fully with all tax and royalty obligations. However, critics argue that legal compliance does not equate to moral responsibility, especially when billions in revenue generate zero corporate tax.

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