Adani pays no company tax on $1bn revenue from Queensland coalmine

Indian conglomerate Adani will pay no company tax on nearly $1 billion in revenue generated from its Carmichael coal mine in Queensland over the past year. Financial accounts reveal that the mine's operations, including production and logistics expenses, offset its $963.5 million revenue, leading to a reported $340.6 million loss for the 12 months ending March 31.

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This is a perfect example of why Australia needs new rules that ensure foreign entities have a sensible capital structure.

Analysis of company accounts shows the Carmichael project has never paid corporate tax since its opening in 2021. This is despite past assurances from Adani that the operations would contribute billions of dollars in taxes and royalties to the Australian economy. The company did pay $58 million in royalties to the government and an additional $33.1 million to a related party during the reporting period.

Tim Buckley, director of Climate Energy Finance, criticized the company's structure, stating it is designed to avoid corporate tax in Australia. He advocates for new regulations to limit deductions for foreign entities. The project's approval in the Galilee Basin has been controversial due to environmental concerns associated with thermal coal extraction.

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We comply fully with our state and commonwealth taxation and royalty obligations and our statutory profit and tax outcomes are determined in accordance with Australian accounting standards and the corporations act.

An Adani Mining spokesperson asserted that the company fully complies with its state and commonwealth taxation and royalty obligations. They added that profit and tax outcomes are determined according to Australian accounting standards and the corporations act. The spokesperson also highlighted that the project provided direct employment for over 1,400 Queenslanders in the last financial year. Meanwhile, Adani's Abbot Point port business, North Queensland Export Terminal, also paid no company tax on $356.6 million in revenue, citing operating expenses leading to a $6.8 million loss.

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The terminal plays an important role in supporting Queensland trade and we remain focused on delivering safe, reliable, and efficient export services for our customers.