Google quietly amassed a record AUD 8.4bn ($6.1bn) in revenue from Australia in 2022, with most of the profits channelled offshore via reseller agreements. Meanwhile, Twitter made only AUD 19m in gross revenue from Australia for the same period, despite a 30% YoY increase. According to its financial documents, Twitter swung from AUD 2m loss to AUD 535,169 profit in 2022. Twitter’s tax bill was AUD 804,217. The accounts lodged with the Australian Securities and Investments Commission show Google Australia had AUD 1.9bn in net revenue, paid AUD 92m in income tax and made an after-tax profit of AUD 274m for 2022.
Google’s Tax Reduction Strategy in Australia Raises Concerns as Revenue Surges.
Google shifts most of its earnings to an international subsidiary, reducing the tax it has to pay in Australia. Gross revenue rose 12.5% in 2022 to AUD 8.4bn, and advertising revenue grew from AUD 6.1bn to AUD 7.1bn, up 16.4%. Google publicly supports efforts to reform the global tax system and is a voluntary signatory of Australia’s Tax Transparency Code. On the other hand, Twitter does not return journalists’ requests for comment.
The two companies’ financial disclosures reveal the strength of some of the world’s most powerful tech companies and their ability to generate cash in an environment of weak economic conditions and advertising dollars drying up towards the end of the year. Despite their growth, Google and Twitter are facing challenges. Google is competing with Microsoft’s Bing search engine, while Twitter is contending with the rise of TikTok.
