Tax Transparency

Tax Governance and Tax Risk Management

Optus is committed to paying tax in compliance with applicable tax laws. As part of the Singtel Group, we endorse and follow strict accountability and transparency in our taxation matters and have in place a Tax Risk Management Framework which is aligned to our Group’s risk management philosophy and approach. This framework formalises our risk appetite and governance structure for managing tax risk. It sets a coordinated approach in the identification, management and mitigation of potential tax risks while promoting responsible tax management. For our approach to Tax Risk Management  please refer here: approach here

Tax Transparency

As a leading Australian technology and telecommunications company, we recognise that our contributions help communities by financing the government activities that support a range of important social initiatives. We acknowledge the need for sensible and useful disclosure of tax information and that tax transparency improves the community’s confidence in the corporate sector.  As a signatory to the Board of Taxation’s voluntary tax transparency code, we continue to publish Tax Transparency Reports and have done so since FY2018.

Our latest Tax Transparency report contains further information including Optus’ Australian contribution to corporate income tax, and reconciliations of accounting profit to income tax expense and tax payable.

Dealings with Tax Authorities and Disputes

We continue to maintain a collaborative, constructive relationship with the Australian Taxation Office (ATO) and engage with the ATO under its Action Differentiation Framework and Justified Trust Approach, an ATO initiative based on a global movement to build and maintain community confidence that taxpayers are paying the right amount of tax. 

In addition to meeting our corporate tax compliance obligations, Optus pays, collects and remits various taxes (such as payroll tax, withholding tax, stamp duty, fringe benefits tax and GST) to, and on behalf of, the Federal and State governments. We also pay Government annual fees and costs, including annual license fees, universal service obligations and spectrum license fees.

Commercial transactions and application of tax laws can be complex sometimes requiring adjudication to ensure fairness and certainty.

On the 8th of March 2024, the Full Federal Court of Australia dismissed the appeal of our Australian head company (Singapore Telecom Australia Investments Pty Limited or ‘STAI’), in respect of STAI’s action against the Commissioner of Taxation. See SGX announcement here. The court case relates to the amended assessments from the Australian Taxation Office (ATO) received in 2016 and 2017 for STAI’s acquisition financing of Optus in 2001. The amended assessments from the ATO amounted to A$393 million, comprising primary tax of A$268 million, shortfall interest of A$58 million and penalties of A$67 million. Under an agreement with the ATO, STAI has already paid A$134 million, being 50% of the primary tax. It is likely there are entitlements to consequential adjustments (for example, STAI’s holding company, Singtel Australia Investment Limited, would likely be entitled to a corresponding interest withholding tax refund of approximately A$89 million). General interest charge has also accrued on the unpaid amounts to 31 March 2024.  The net tax expense exposure and related interest and penalties have been fully provided for in the financial statements. On the 4th of April 2024, STAI filed an application for a grant of special leave to appeal to the High Court.

International related party dealings

The Singtel Group has operations across a large number of jurisdictions, including Singapore, Australia, India, Thailand and the Philippines. For the year ended 31 March 2024, all international transactions entered into by Optus with entities that are part of the Singtel Group were at normal commercial terms and conditions and at market rates. Optus’ key international related party dealings for this period were in relation to finance, global data and network connectivity services for wholesale and retail internet, and voice and data telecommunications connections and services.