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  • Tax payable – by industry segment

    The increase in tax payable across the CTT population this year was primarily driven by the mining, energy and water segment (see Figure 9) – in particular, strong commodity prices and export volumes. There were declines in tax payable in banking, finance & investment and in insurance. There was low growth in manufacturing and wholesale retail services, reflecting more challenging economic conditions in 2019–20 and a softening in non-mining sector corporate profits in recent years.

    Figure 9: Change in tax payable, by industry segment

     Total tax payable by corporate entities in 2019–20 was $57,245 million, compared with $56,082 million in 2018–19. Tax payable decreased in 2019-20 in the banking, finance and investment industry segment by -$815 million and in the insurance segment by -$336 million. Manufacturing, construction and agriculture segment had increased tax payable during 2019-20 of $97 million, wholesale, retail and services increased by $124 million, and mining, energy and water had increased tax payable of $2,093 million.

    Economic factors can affect the performance of an industry segment in a given year. The insurance segment was affected by a number of natural disasters in 2019–20. The banking, finance and investment segment is facing increased regulatory expenses and reduced revenues. Cyclical factors can affect any business but especially the tax performance of the mining, energy and water segment. Significant project construction costs can result in material deductions during the construction phase, when a project is not yet generating revenue. This can result in the generation of tax losses which can be carried forward for a number of years.

    Refer to Why some corporations pay no tax for more information.

      Last modified: 10 Dec 2021QC 67484