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

Adani, the Indian conglomerate, pays no company tax despite generating nearly $1bn in revenue from its Queensland coalmine, raising serious questions about tax fairness and corporate accountability in Australia.

Adani's Financial Structure Avoids Company Tax

Financial accounts reveal that Adani's Carmichael thermal coal operations recorded a $963.5m revenue in the 12 months to 31 March, yet ended up with a $340.6m loss after deducting large production and related party logistics expenses. This loss wiped out any tax liability, meaning the company paid zero corporate tax for the year.

According to Guardian Australia's analysis, Adani has never paid corporate tax since the mine opened in 2021, despite earlier promises that the project would contribute billions in taxes and royalties. The company did pay $58m in royalties to the Queensland government, but critics argue this is insufficient given the scale of revenue.

Related Party Transactions and Tax Avoidance

Adani also paid a $33.1m royalty to a related party, a move that experts say is part of a broader strategy to shift profits and reduce taxable income. Tim Buckley, director of Climate Energy Finance, called this "a perfect example of why Australia needs new rules that ensure foreign entities have a sensible capital structure."

Buckley advocates for limiting the amount of deductions a business can claim, which would prevent large multinationals from using complex structures to avoid tax. The Carmichael mine, located in the Galilee Basin, has been controversial from the start due to environmental concerns and its impact on climate change.

Comparison of Adani's Tax Payments vs. Royalties

The table clearly shows that while Adani pays royalties (which are payments for extracting state-owned minerals), it avoids corporate tax entirely. This is a significant loophole that allows the company to benefit from Australian resources without contributing to the federal tax base.

Impact on Australian Economy and Communities

Industry groups supporting Adani had claimed the project would fund schools, hospitals, and infrastructure for "almost a century" through mining taxes and royalties. However, the reality is that the company pays no corporate tax, and its royalty payments are relatively modest compared to its revenue.

Adani Mining spokesperson defended the company, stating that the project provides direct jobs for more than 1,400 Queenslanders and that they comply fully with all taxation and royalty obligations. Yet, critics argue that compliance with current laws is not enough when those laws allow such large-scale tax avoidance.

Key Takeaways

• Adani paid no company tax on $963.5m revenue from its Queensland coalmine.
• The company used production and related party expenses to record a $340.6m loss.
• Adani paid $58m in royalties, but no corporate tax since 2021.
• Experts call for stricter rules on foreign entities' capital structures.
• The Carmichael mine remains controversial due to environmental and tax concerns.

Potential Reforms to Close Tax Loopholes

Tim Buckley and other advocates suggest that Australia should implement rules that limit the amount of debt-related deductions foreign companies can claim. This would prevent profit shifting and ensure that companies like Adani pay their fair share of tax.

Such reforms could generate significant revenue for the government, which could be used for public services and infrastructure. However, any changes would likely face opposition from multinational corporations and some industry groups.

Frequently Asked Questions