About a third of large Australian companies did not pay taxes even though they made profits, according to the Australians Taxation Office (ATO).

"While the majority of entities in the corporate transparency population made profits and paid tax in relation to the 2016-17 year, some do not pay tax," according to a report from the ATO.  "We look to understand the reason for tax losses or nil tax payable.  Sensitivity to economic conditions, reinvestment back into the business, distribution of profits to other entities within the broader group, tax deductions and tax offsets can all affect the amount of taxable income and tax payable."

The ATO gathered data on 2,109 companies in 2016 and 2017; of those companies, 66 percent paid tax.  But the remainder did not as they claimed tax losses and concessions that can go back several years.

Of the top companies that did not pay tax, the group included more than half of the largest mining, energy and water companies, and nearly 40 percent of manufacturing, construction, and agriculture firms.  Overall, total corporate income tax collected in the study period was up 19 percent - AU$7.5 Billion - over the prior period, to $45.7 Billion.