Microsoft Australia nudges $3B in annual revenue
- 01 November, 2019 11:36
Microsoft’s Australian business enjoyed an increase in both revenue and after-tax profit during the financial year ending June 2019, with the vendor coming close to booking $3 billion in revenue for the year.
According to Microsoft Australia’s latest full year financial results to be lodged with the corporate regulator, the company booked $2.98 billion in annual revenue from continuing operations, a hefty increase from the $2.26 billion it reported the previous year.
The company’s profit after tax for the year ending June 2019, meanwhile, was $108.5 million, again a notable increase from the $100.1 million it reported for the year ending June 2018.
With greater profit came a larger tax bill, with Microsoft reporting $58.3 million income tax expense in the year, up from the $53.3 million it reported the year prior.
Microsoft revealed in late 2017 it had reached a new tax arrangement with the Australian Taxation Office (ATO) -- on the very same day it fronted up to a public hearing for the Government's inquiry into Corporate Tax Avoidance on 22 August.
Before the new arrangement was struck, the company, along with Apple and Google, had been under scrutiny by the ATO and the Federal Government over its tax practices in Australia, dating back to at least 2012 in some cases.
Since then, the software giant has put in place changes to how it sells and recognises revenue in Australia. In the 2016 financial year, for example, Microsoft generated $1.8 billion in sales, which were booked in Singapore.
The new arrangement with the ATO sees the profit generated from Microsoft Australia’s sales and marketing taxed locally, within Australia.
"Microsoft sells products and services directly to local partners and customers in Australia, and all revenue from those sales and expenses are reported locally,” a Microsoft spokesperson previously told ARN.