There are 2,468 corporate entities in the 2020–21 corporate transparency population, with tax payable of $68.6 billion. Compared to 2019–20, this represents a net increase of 98 entities (4.1%) and an increase in tax payable of approximately $11.4 billion (19.8%).
Figure 1 shows a relatively steady corporate transparency population growth over the last 5 years. The growth is caused by more corporations exceeding the reporting income thresholds each year.
Figure 1: Corporate tax transparency population, growth over 5 years
Foreign-owned entities accounted for 55.8% of the corporate transparency population in 2020–21, while Australian public entities and Australian private entities accounted for 22.8% and 21.4% of the population respectively (see Figure 2).
Figure 2: Corporate entities by ownership segment, 2020-21
Wholesale, Retail and Services (WRS) is the largest industry segment at 53.5% of the corporate tax transparency population, followed by:
- Manufacturing, Construction and Agriculture (MCA) at 22.0%
- Banking, Finance and Investment (BFI) at 11.0%
- Mining, Energy and Water (MEW) at 10.6%
- Insurance (ISR) at 2.9%.
Exits from the population
In 2020–21, 294 entities exited the population, 392 entities were new entrants, and 2,076 entities were part of last year's population.
Entities may exit the population because they:
- restructured or joined a tax consolidated group during the year (or both)
- reported income below the transparency thresholds
- had not yet lodged or had lodged a company tax return that was not processed by the cut-off date for the report (1 September 2022)
- were not required to lodge a company tax return due to deregistration.
See Figure 3 for the reasons for entities exiting the population this year.
We follow up entities that don't lodge returns as part of our non-lodgment program.
The number of entities that exited the transparency population due to a drop in income is consistent with a normal level of 'churn' in the population over recent years.
Entities that fail to lodge are subject to lodgment penalties and compliance action, this lodgment compliance can eventuate in prosecution action.
Figure 3: Exits from the corporate transparency population – entire population