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Dimension Data Australia finishes 2017 with AU$16.5m loss

The local arm of the Japanese IT services giant received a AU$5.3 million tax benefit from the Australian government, bringing its FY17 loss down to AU$16.47 million.

For the 2017 financial year, Dimension Data Australia Pty Limited suffered a loss to the tune of AU$16.47 million, an improvement however on the AU$106 million loss reported for FY16.

The local arm of the IT services giant, which employs 2,836 individuals locally, received an income tax benefit of AU$5.3 million from the Australian government, which brought its loss down from AU$21.7 million.

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Reporting a loss means the company did not pay any tax for the year ended September 30, 2017.

A recent report from the Australian Taxation Office shows that although Dimension Data Australia pulled in income of AU$1.2 billion during 2014-15, it paid no tax in Australia for that period.

Dimension Data, with total income again of AU$1.2 billion, did not report a taxable income during the 2015-16 financial year either, which again saw it pay no tax.

For 2016-17, revenue was again reported as AU$1.2 billion.

Dimension Data Australia is an IT services and solutions provider that falls within the long distance and international communications business segment of the NTT group, the company explained.

The local arm of Dimension Data has a 100 percent equity holding in Dimension Data Cloud Solutions Australia Pty Ltd, Viiew Pty Ltd, DDA Holdings Pty Ltd, Oakton Pty Limited, SQL Australia Pty Ltd, and New Zealand's SQL Services Ltd.

Its direct parent entity is Dimension Data Holdings Plc, a company incorporated in England and Wales; however its ultimate holding company is Nippon Telegraph and Telephone Corporation (NTT), a company incorporated in Japan.

On September 30, 2017, the company sold Dimension Data Cloud Solutions Australia Pty Ltd to Dimension Data Group Services Australia Pty Ltd, a related entity within the same tax group.

Three months into the 2018 financial year, an announcement was made by NTT Communications and Dimension Data in November that the organisations would be bringing together their respective cloud infrastructure-as-a-service (IaaS) sectors under the management of NTT in a bid to deliver "transformative, cloud-based solutions and innovation" to clients of both, globally.

The group, however, continues to offer cloud IaaS services that will be sourced from NTT as a wholesale provider, as well as being responsible for service development and operation.

A report from the Australian National Audit Office on government procurement revealed in December that from 2012-13 through 2016-17, Dimension Data received over AU$300 million from the federal government for IT-related services.

The Victorian government similarly gave Dimension Data AU$450,000 in August 2016 to set up a cybersecurity incubator with Deakin University, as part of its LaunchVic initiative.

The cybersecurity accelerator program was launched the following July.

LaunchVic was established in November and will be given AU$60 million over four years to invest in core infrastructure, improve access to capital for local startups, advocate on Commonwealth legislation and regulation, as well as engage in startup events, campaigns, competitions, and mentoring programs.

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