Corporate tax transparency report for the 2018-19 income year

Six-year trend analysis

Since the start of this report in 2013–14, increases in the number of entities in each industry has been a key contributing factor to growth in tax paid and income across all segments. The exception is the mining, energy and water segment, where commodity prices and export volumes have been key contributing factors in volatility in total income and tax payable.

All other segments experienced relatively stable growth in tax payable over the six years. However, there was a decline in 2018–19 which reflects a softening in non-mining sector corporate profits and the impact of challenging market conditions.

Taxable income is a corporate's total income minus expenses, and is therefore affected by revenue growth and market conditions affecting deductions (for example, interest rates changes will affect a corporate's borrowing expenses). Non-mining segments have relatively low growth in taxable income over the past six years. The mining, energy and water segment has contributed to overall growth in taxable income in the total population over the past three years.

The following figures illustrate the changes by industry segment in tax payable, total income, taxable income, and entity counts over the six years since the first report on corporate tax transparency was released.

Figure 3 and Figure 4 illustrate the trend in tax payable by industry segment in the six years to 2018–19. Table 1 summarises this data.

Figure 3: Six-year trend of tax payable by industry segment

Figure 4: Six-year trend of tax payable by industry segment

Like in Figure 3, this graph shows the trend in tax payable across the six years of 2013–14 to 2018–19, but in the form of an area graph. The data is broken down by industry segment (banking, finance and investment; insurance; manufacturing, construction and agriculture; wholesale, retail and services; and mining, energy and water).

Table 1: Six-year trend of tax payable by industry segment ($b)
Industry segment	2013–14	2014–15	2015–16	2016–17	2017–18	2018–19
BFI	12.6	14.1	14.5	15.5	16.2	14.9
ISR	2.2	2.4	2.5	2.7	2.7	2.2
MCA	2.6	3.6	3.3	3.5	4.1	3.6
WRS	11.3	11.5	11.6	11.9	13.2	12.4
MIN	13.2	10.3	6.3	12.1	16.1	22.9
All industry segments	41.9	41.9	38.2	45.7	52.3	56.1

Figures 5 and 6 below illustrate the trend in total income by industry segment in the six years to 2018–19. Table 2 summarises this data.

Figure 5: Six-year trend of total income by industry segment

Figure 6: Six-year trend of total income by industry segment

Like in Figure 5, this graph shows the trend in total income across the six years of 2013–14 to 2018–19, but in the form of an area graph. The data is broken down by industry segment (banking, finance and investment; insurance; manufacturing, construction and agriculture; wholesale, retail and services; and mining, energy and water).

Table 2: Six-year trend of total income by industry segment ($b)
Industry segment	2013–14	2014–15	2015–16	2016–17	2017–18	2018–19
BFI	286.0	263.7	312.4	269.6	291.3	284.1
ISR	111.1	119.8	122.6	116.2	121.5	132.3
MCA	269.4	281.3	301.2	301.0	332.5	336.1
WRS	744.7	770.5	795.5	824.3	882.7	933.9
MIN	363.4	345.8	312.2	337.0	371.9	442.4
All industry segments	1,774.6	1,781.1	1,843.8	1,848.1	2,000.0	2,128.7

Figures 7 and 8 below illustrate the trend in taxable income by industry segment in the six years to 2018–19. Table 3 summarises this data.

Figure 7: Six-year trend of taxable income by industry segment

This column graph shows the trend of taxable income across the six years of 2013–14 to 2018–19, by industry segment (banking, finance and investment; insurance; manufacturing, construction and agriculture; wholesale, retail and services; and mining, energy and water). With the exception of the mining, energy and water segment which dropped in 2015–16 before increasing again in 2016–17, and the banking, finance and investment segment which increased in 2015–16 before dropping slightly in 2016–17 and again in 2018–19, the taxable income across industry segments has remained broadly stable. This graph also shows that across all industry segments for all six years there had been an overall decline in taxable income, which recovered in 2016–17.

Figure 8: Six-year trend of taxable income by industry segment

Like in Figure 7, this graph shows the trend in taxable income across the six years of 2013–14 to 2018–19, but in the form of an area graph. The data is broken down by industry segment (banking, finance and investment; insurance; manufacturing, construction and agriculture; wholesale, retail and services; and mining, energy and water).

Table 3: Six-year trend of taxable income by industry segment ($b)
Industry segment	2013–14	2014–15	2015–16	2016–17	2017–18	2018–19
BFI	60.4	55.5	70.8	63.3	74.8	63.8
ISR	11.5	12.3	13.1	14.5	14.4	12.7
MCA	10.0	13.1	12.4	12.7	14.8	15.5
WRS	34.7	36.8	34.7	35.3	40.3	37.1
MIN	40.0	27.3	11.0	30.3	49.2	79.1
All industry segments	156.5	145.1	142.0	156.2	193.5	208.2

Figures 9 and 10 below illustrate the count of entities by industry segment in the six years to 2018–19. Table 4 summarises this data.

Figure 9: Count of entities by industry segment over six years

This column graph shows the trend in the number of entities in the population across the six years of 2013–14 to 2018–19, by industry segment (banking, finance and investment; insurance; manufacturing, construction and agriculture; wholesale, retail and services; and mining, energy and water). The entity count across industry segments has remained broadly stable, with the exception of wholesale, retail and services which has shown a year-on-year increase. This graph also shows that across all industry segments for all six years there had been an overall increase in the entity count.

Figure 10: Count of entities by industry segment over six years

Like in Figure 9, this graph shows the trend in the number of entities in the population across the six years of 2013–14 to 2018–19, but in the form of an area graph. It is broken down by industry segment (banking, finance and investment; insurance; manufacturing, construction and agriculture; wholesale, retail and services; and mining, energy and water).

Table 4: Count of entities by industry segment
Industry segment	2013–14	2014–15	2015–16	2016–17	2017–18	2018–19
BFI	179	180	192	203	215	220
ISR	54	60	61	62	61	66
MCA	429	429	468	485	502	529
WRS	948	991	1,084	1,126	1,192	1,240
MIN	249	244	236	233	244	256
All industry segments	1,859	1,904	2,041	2,109	2,214	2,311

Last modified: 10 Dec 2020QC 64354