In 2022–23 the Australian economy had recovered from the impacts of COVID-19. Australia’s corporate taxpayers had mixed performance, influenced by:
- rising interest rates
- increasing inflation
- mixed commodity prices – most commodities were down but there was strong growth in oil, gas, thermal coal and lithium prices.
Tax paid in 2022–23 was the highest since Corporate tax transparency reporting started and increased by $14 billion (16.7%) to $97.9 billion on the prior year.
As in previous reports, Mining, Energy and Water outperformed other segments of the economy. There was also strong growth in the Wholesale and Retail sectors. Many businesses experienced strong consumer demand and rapid growth in business income, however this was offset by significantly higher input costs, leading to a squeeze in profit margins for some sectors.
Tax paid by the Oil and Gas sector increased from $1.5 billion in 2021−22 to $11.6 billion in 2022−23. Around $4.3 billion of the increase was due to our earlier interventions in the Oil and Gas sector now flowing through the system, positively impacting tax collections.