• Enjoy the freedom to innovate and grow your business

    [ad] With Microsoft Azure you have hybrid cloud flexibility, allowing your platform to span your cloud and on premise data centre. Learn more at microsoftcloud.com.

  • IT Admin: No Time to Save Time?

    [ad] Do you spend too much time patching machines or cleaning up after virus attacks? With automation controlled from a central IT management console accessible anytime, anywhere – you can save time for bigger tasks. Try simple IT management from GFI Cloud and start saving time today!

  • Free Forrester analysis of CRM solutions

    [ad] In this 25 page report, independent analyst house Forrester evaluates 18 significant products in the customer relationship management space from a broad range of vendors, detailing its findings on how CRM suites measure up and plotting where they stand in relation to each other. Download it for free now.

  • Great articles on other sites
  • RSS Great articles on other sites

  • Reader giveaway: Google Nexus 5

    We’re big fans of Google’s Nexus line-up in general at Delimiter towers. Nexus 4, Nexus 7, Nexus 10 … we love pretty much anything Nexus. Because of this we've kicked off a new competition to give away one of Google’s new Nexus 5 smartphones to a lucky reader. Click here to enter.

  • News - Written by on Monday, May 2, 2011 17:12 - 6 Comments

    Google Australia claims 2010 financial loss

    The Australian division of search giant Google has filed financial accounts with the nation’s corporate regulator stating it made a loss of $3.08 million in 2010, paying just $7.4 million in taxes as a result, off local revenues of $151.39 million.

    The company’s listed revenues jumped substantially over the 12 months, according to the statement, rising from $110.31 million in 2009, to $151.39 million for the year to December 31, 2010. Google’s biggest local cost was its 434 employees – which soaked up some $111.6 million in the period, meaning their average salary was a whopping $257,000.

    However, the company also spent a great deal on advertising and promotional expenses — $10.53 million in 2010. Other major expenses included travel and entertainment – which was $7.13 million.
    The company’s basic profit and loss statement only listed tax costs of $1.1 million, although the company was actually slated to pay some $7.4 million in taxes in 2010. However it balanced that figure out with deferred tax payments and adjustments.

    At the end of the year, Google Australia was holding some $21.3 million in cash and cash, as well as $34.2 million of what it said were ‘trade and other receivables’. It had some $16.1 million worth of property, plant and equipment.

    However, not everyone believes that Google’s disclosed finances reflect an accurate picture of the company’s local revenues – with industry figures and analysts having stated over the past several years that they believe Google to be making something between $650 million and $1 billion. As Google is not listed on the Australian Stock Exchange, it is not required to go into a great deal of detail about its local finances.

    In the financial statements released last week, Google stated in the revenue recognition section of the documents that it had a number of agreements with other Google subsidiaries which guided how it recognised revenue.

    ”The company has a service agreement with Google Inc for the provision of research and development services, a service agreement with Google Ireland Ltd for the provision of sales and marketing services and a service agreement with Walkway Technologies US LLC for the provision of research and development services,” Google stated.

    In a separate statement, a Google Australia spokesperson said: “Google complies fully with all relevant tax legislation in all the countries in which it operates, including in Australia. That means that we contribute to all relevant local and national taxation schemes – as well as providing employment for over 400 employees in Australia.”

    A spokesperson for the ATO said the agency would not comment on the details of any specific taxpayer. Google’s financial accounts were audited by accounting firm Ernst & Young, and the company lists US-based global finance director Lloyd Martin and general counsel Kent Walker, as well as local director Mark Tucker, as the company’s director contacts. Google Australia lists law firm Baker & McKenzie as its company registered office.

    Image credit: Briony, Creative Commons

    submit to reddit


    You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

    1. Bob Loblaw
      Posted 03/05/2011 at 8:51 am | Permalink |

      Wow. I mean I know they book their search revenues in Ireland, but this is a pretty remarkable story. A 30% corporate tax rate on a company that makes $1bn in revenue, which most commentators estimate is pretty accurate, is a LOT of lost tax revenue

    2. Paul
      Posted 03/05/2011 at 9:37 am | Permalink |

      Wow – that is a massive average Salary!

      • Posted 03/05/2011 at 10:34 am | Permalink |

        No kidding, I was fairly jealous! :)

      • Posted 03/05/2011 at 10:38 am | Permalink |

        Wouldn’t that be “average cost per employee” rather than “average salary”? That would include at least super + workers comp + other benefits. But yeah, still a nice chunk of left over for salary :)

      • David
        Posted 04/05/2011 at 8:35 am | Permalink |

        Average, eh? That’s a useful statistic. Let’s take the money banks pay out to their employees, including their fat board member and CEO salaries and divide it by all of people they employ – that’s a reasonable estimation what everyone employed by that bank earns, right?

    3. Posted 03/05/2011 at 4:32 pm | Permalink |

      Disclaimer: My comments are not to be considered Tax Office Advice:

      While the Aussie tax regime is not as insane as the US tax code, a smart (and more importantly a LARGE company) can avoid to pay most if not all local taxes.

      Things like tax treaties, overseas tax credits and repatriating profits, as well as local R&D offsets and other tax schemes makes a company willing to spend the money on the tax law ninjas can minimise its tax.

      However, there may be other reasons for a tax loss, and my guess would be that if Google Australia books everything in US$, the rising A$ would hit the company bad. Income of AS$1000 goes from (not real figures) US$1050 to US$950.

    Get our 'Best of the Week' newsletter on Fridays

    Just the most important stories, one email a week.

    Email address:

  • Most Popular Content

  • Six smart secrets for nurturing customer relationships
    [ad] Today, we are experiencing a world where behind every app, every device, and every connection, is a customer. Your customers will demand you to be where they and managing customer relationship is the key to your business’s growth. The question is where do you start? Click here to download six free whitepapers to help you connect with your customers in a whole new way.
  • Enterprise IT stories

    • Greens claim NSW LMBR project turning into a disaster sydney

      The NSW Greens late last week claimed to have obtained documents showing that the NSW Department of Education and Communities’ wide-ranging Learning Management and Business Reform program, which involves a number of rolling upgrades of business administration software, was deployed before it was ready, with “appalling consequences for administrative staff, principals, teachers and students”.

    • NSW Govt trials inter-truck safety devices trucks-cohda

      The New South Wales Government has inked a contract with connected vehicle technology supplier Cohda Wireless, as part of a trial of so-called Cooperative Intelligent Transport Systems (C-ITS) which allow heavy vehicles to communicate directly with each other about their position on the road to help reduce road accidents.

    • Victoria finally kills $180m Ultranet disaster thumbsdown1

      The Victorian Government has reportedly terminated its disastrous Ultranet schools portal, which ballooned in cost to $180 million over the past seven years but ended up being barely used by the education stakeholders it was supposed to serve.

    • NetSuite in whole of business TurboSmart deal turbosmart

      Business-focused software as a service giant NetSuite has unveiled yet another win with a mid-sized Australian company, revealing a deal with automotive performance products manufacturer Turbosmart that has seen the company deploy a comprehensive suite of NetSuite products across its business.

    • WA Health told: Hire a goddamn CIO already doctor

      A state parliamentary committee has told Western Australia’s Department of Health to end four years of acting appointments and hire a permanent CIO, in the wake of news that the lack of such an executive role in the department contributed directly to the fiasco at the state’s new Fiona Stanley Hospital, much of which has revolved around poorly delivered IT systems.

    • Former whole of Qld Govt CIO Grant resigns petergrant

      High-flying IT executive Peter Grant has left his senior position in the Queensland State Government, a year after the state demoted him from the whole of government chief information officer role he had held for the second time.

    • Hills dumped $18m ERP/CRM rollout for Salesforce.com hills

      According to a blog post published by Salesforce.com today, one of Ted Pretty’s first moves upon taking up managing director role at iconic Australian brand Hills in 2012 was to halt an expensive traditional business software project and call Salesforce.com instead.

    • Dropbox opens Sydney office koalabox

      Cloud computing storage player Dropbox has announced it is opening an office in Sydney, as competition in the local enterprise cloud storage market accelerates.

    • Heartbleed, internal outages: CBA’s horror 24 hours commbankatm

      The Commonwealth Bank’s IT division has suffered something of a nightmare 24 hours, with a catastrophic internal IT outage taking down multiple systems and resulting in physical branches being offline, and the bank separately suffering public opprobrium stemming from contradictory statements it made with respect to potential vulnerabilities stemming from the Heartbleed OpenSSL bug.

    • Android in the enterprise: Three Aussie examples from Samsung androidapple

      Forget iOS and Windows. Today we present three decently sized deployments of Android in the Australian market on Samsung’s hardware, which the Korean vendor has dug up from its archives over the past several years for us after a little prompting :)

  • Enterprise IT, News - Apr 23, 2014 15:58 - 4 Comments

    Greens claim NSW LMBR project turning into a disaster

    More In Enterprise IT

    Blog, Telecommunications - Apr 24, 2014 14:00 - 11 Comments

    iiNet to splurge $350m on content, media

    More In Telecommunications

    Analysis, Industry - Apr 24, 2014 16:05 - 0 Comments

    Free to fail: Why corporates are learning to love venture capital

    More In Industry

    Blog, Digital Rights - Apr 23, 2014 12:57 - 35 Comments

    Cinema execs blame piracy for $20 ticket prices

    More In Digital Rights