Google and Meta have channeled close to $11 billion to overseas affiliates through service charges and reseller arrangements in the past year, while their combined tax contribution locally totaled just over $140 million, according to newly filed financial disclosures.

The latest reports, lodged with the corporate regulator, highlight a strong financial performance for both companies despite a softer domestic advertising environment. The figures show that the two global players continue to generate substantial returns from their Australian operations.

Meta’s Australian arm recorded $224 million in revenue and $61 million in profit for the year ending December 31, marking a 26 per cent increase in earnings. The entity primarily functions as a sales intermediary, distributing advertising inventory on behalf of its US-based parent company.

Total revenue attributed to Meta’s local operations climbed 16 per cent to $1.8 billion, largely driven by advertising. A significant portion of that income, about $1.5 billion, was paid out to related entities within the broader corporate group, reflecting a 21 per cent rise in internal transfers.

These numbers only capture part of the company’s activity in Australia. Much of the advertising purchased by Australian clients is billed through jurisdictions with lower tax rates, such as Ireland. Government estimates have previously suggested Meta’s true revenue from Australian users exceeded $4.7 billion in 2022.

For the first time, Meta’s Australian business also issued a dividend, with $120 million distributed to its sole shareholder, Facebook Global Holdings II, LLC. The company reported $48 million in income tax paid locally.

Google reports its Australian performance through two divisions, covering its core operations and cloud services. Together, they generated $2.4 billion in revenue and $394 million in profit, representing a 15 per cent increase. Income tax paid in Australia totaled $94 million.

Like Meta, Google’s local entities operate largely as agents for the global organisation, which is ultimately owned by Alphabet. In Australia, the company earns income from advertising across platforms such as YouTube, Search, Maps and Gmail, along with cloud computing services and hardware sales.

The latest accounts show strong growth in advertising and cloud-related activities, while hardware sales declined. Advertising revenue reached $731 million, up 10 per cent. Cloud reselling brought in $399 million, rising 34 per cent, and hosting services generated $265 million, up 29 per cent. In contrast, sales of devices such as Pixel phones and smart home products fell 24 per cent to $238 million.

Google also paid $9.4 billion to related companies for services, an increase of 14 per cent. These types of internal transactions, known as transfer pricing, are legal when conducted within regulatory guidelines, though they have long attracted scrutiny when they appear to reduce taxable profits in higher-tax countries.

The relatively modest tax payments compared to overall revenue have drawn criticism from industries that compete with the tech sector, including media, banking and emerging AI businesses. Many argue that the dominance of these platforms has shifted advertising dollars away from traditional players.

At the same time, the influence of companies such as Google, Meta and TikTok has positioned them as essential infrastructure for modern businesses. This has prompted regulatory efforts to ensure they compensate content creators whose material appears on their platforms.

The federal government is preparing to release details of its proposed News Bargaining Incentive, which aims to encourage technology companies to enter payment agreements with Australian publishers. Google has already established deals with local media outlets, citing the value news content adds to its search results.

Meta, however, has taken a different approach. The company has declined to renew earlier agreements made in 2021 and has signaled it may remove news content from its platforms altogether.

Traditional media organisations, including Nine Entertainment, Southern Cross Media and ARN Media, continue to face mounting pressure as advertising revenue increasingly shifts toward digital platforms and social networks, reshaping the competitive landscape.