Adani Pays No Company Tax Despite $1bn Coal Revenue 2026

Adani pays no company tax despite generating nearly $1 billion in revenue from its Queensland coalmine, raising serious questions about tax fairness and corporate structures. The Indian conglomerate's Carmichael thermal coal operations reported a $963.5 million revenue for the 12 months to 31 March, yet recorded a $340.6 million loss after large production and related-party logistics costs, wiping out its tax bill. This article examines how Adani avoids company tax, the implications for Australia's tax system, and why reform is urgently needed.

How Adani Avoids Company Tax on Coal Revenue

Adani's financial accounts reveal a deliberate strategy of offsetting revenue with high expenses, including payments to related parties. These deductions reduce taxable income to zero, meaning no corporate tax is paid despite substantial earnings from coal mining. The company has never paid corporate tax since operations began in 2021, contradicting earlier promises of billions in tax contributions.

Related Party Transactions and Deductions

A key tactic is the use of related-party logistics expenses, where Adani pays its own subsidiaries for services like transport and management. These fees are deductible, lowering profits artificially. In the latest year, Adani also paid a $33.1 million royalty to a related party, further reducing its Australian tax exposure. Such structures are legal but criticized as aggressive tax avoidance.

Royalties vs. Company Tax: What Adani Actually Paid

While Adani paid $58 million in royalties to the Queensland government, royalties are not income tax. Royalties are payments for extracting state-owned minerals, while company tax is levied on profits. The distinction is crucial: royalties do not fund general government services like schools or hospitals, which is what corporate tax supports. Adani's royalty payments are a fraction of what company tax would be on $1 billion revenue.

Why Australia Needs Tax Reform for Foreign Entities

Tim Buckley, director of Climate Energy Finance, argues this case exemplifies why Australia must introduce rules limiting deductions for foreign entities. Without such reforms, multinationals can shift profits offshore and avoid paying their fair share. Proposed changes would cap deductible expenses, ensuring profitable operations contribute to public finances.

Impact on Queensland Communities

Industry groups once claimed Adani's project would fund schools and hospitals for a century. Instead, the project provides jobs for 1,400 Queenslanders but no corporate tax revenue. This disparity undermines public trust and highlights the need for stronger tax enforcement and transparency.

Key Takeaways from Adani's Tax Avoidance

• Adani paid zero company tax on $963.5 million revenue from its Queensland coal mine.
• Large deductions, including related-party costs, offset all profits.
• Royalties paid ($58M) are separate from income tax and do not replace it.
• Experts call for new rules to limit tax-deductible expenses for foreign entities.
• The project has never paid corporate tax since opening in 2021.

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