Australian banks demand US tech giants pay their fair share of tax
Australia’s banking sector has paid an eye-watering amount of tax over the last financial year, and is now calling out big foreign technology companies to do the same.
Australia’s banks have revealed the eye-watering amounts of taxes they pay as they ramp up their pressure on the US technology giants which deliver similar services to do the same.
New research released by the Australian Banking Association (ABA) showed the sector paid $16bn in taxes and other levies over the 2025 financial year.
This was an effective tax rate of 40 per cent and the second most tax paid by sector with the mining industry contributing $70bn in taxes and royalties.
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While the banks say they are happy to pay their fair share of taxes, they have taken aim at giants in the US which in their estimates are not paying their fair share of the tax bill.
“Australia’s banks pay their fair share of tax to fund critical public services,” the report said.
“Meanwhile, large foreign multinationals generate revenue from Australia’s economy without making comparable contributions. If this gap continues to grow unchecked, funds that benefit the Australian community through public services and superannuation will be impacted, undermining the long-term sustainability of the economy.”
According to the report, Commonwealth Bank paid $3.4 billion, NAB $2.6 billion, Westpac $2.2 billion and ANZ $1.6 billion.
At the same time three major US technology players, Alphabet Inc paid $323m in taxes, Apple contributed $153m and Meta Platforms paid just $39m – totalling $515m in local taxes.
This is despite the big US technology businesses increasingly delivering bank-like services, but without the same regulations and tax requirements.
The banking association also say they are employing 30 times the Australians compared with the global technology players.
Australian Banking Association chief executive Simon Birmingham said Australian banks made a significant contribution to the economy through their taxation.
“It’s Australian banks that have built our payments system and do the heavy lifting when it comes to fighting financial crime,” Mr Birmingham said.
“Unfortunately, there is a current regulatory imbalance that is seeing global technology platforms and multinational payments firms deliver bank-like services here in Australia, without bearing proportionate regulatory and fiscal responsibilities.
The ABA points out the Australian banking industry is largely responsible for fighting cyber crime, while the major technology companies do not have the same obligations.
The Contribution Gap report said banks had also spent billions building Australia’s digital financial infrastructure, including $2 billion on the New Payments Platform, $1.5 billion on the Consumer Data Right, and $100 million on Confirmation of Payee scam protection technology
Mr Birmingham said it is time to level the playing field.
He added: “These foreign multinationals need to be captured under the same regulatory umbrella as domestic banks, as well as more scrutiny applied to their local tax contributions.”
Originally published as Australian banks demand US tech giants pay their fair share of tax
