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%.
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.
Figure 3: Exits from the corporate transparency population – entire population