**The $882 million payout is factually accurate.** Rupert Murdoch's News Corporation received approximately $882 million from the Australian Taxation Office (ATO) in December 2013 and January 2014 following a long-running legal dispute over tax deductions dating back to 1989 [1][2].
**The payout was indeed substantial relative to the budget deterioration.** According to the Australian Financial Review, "The single largest factor in the underlying deterioration of the federal budget announced by Treasurer Joe Hockey in December was a cash payout of almost $900 million to Rupert Murdoch's News Corporation" [2].
The Sydney Morning Herald reported that the payout "all but wipes out $1.1 billion in savings announced by Mr Hockey when he unveiled the mid-year economic and fiscal outlook on December 17" [1].
**The $16.8 billion figure is accurate.** The December 2013 Mid-Year Economic and Fiscal Outlook (MYEFO) showed a $16.8 billion deterioration in the underlying cash balance for 2013-14 compared to the Pre-Election Fiscal Outlook [3].
**Joe Hockey did not mention the News Corp payout** when announcing the MYEFO figures.
**The tax dispute originated in 1989 - well before the Coalition government.** The case related to a complex internal restructure of News Corporation's corporate structure during the 1980s, when the company was dealing with debt from its global expansion.
The Federal Court decision in News Corp's favor was handed down on July 25, 2013 - during the election campaign and before the Coalition took office [1][2].
**The ATO chose not to appeal the decision.** The ATO had a 28-day window to appeal to the High Court following the July 25, 2013 Federal Court decision, but chose not to pursue further legal action.
This decision was made during the caretaker period of the federal election campaign [1][2].
**Tax settlements are standard practice.** The ATO regularly settles tax disputes with large corporate entities.
According to the ATO, settlements are a standard part of dispute resolution, with public and multinational businesses accounting for around 92% of tax revenue secured through settlements in recent years [4].
**The News Corp settlement was not discretionary spending** but rather the resolution of a legal obligation.
**The Sydney Morning Herald** and **Australian Financial Review** are both mainstream, reputable Australian business news sources with established editorial standards.
The claim that this was "the single biggest item" in the budget deterioration comes from the AFR's analysis of the MYEFO documents, not from Hockey's explicit acknowledgment.
**Did Labor governments have similar large tax settlements?**
Yes.
* * * *
Large tax settlements occur across governments of all persuasions:
- **2022 Rio Tinto settlement:** The Albanese Labor government announced a $1 billion settlement with Rio Tinto in 2022 - one of the largest tax settlements in Australian history [5].
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This was significantly larger than the News Corp settlement.
- **Historical pattern:** The ATO has consistently settled disputes with large corporate taxpayers regardless of which party is in government.
Settlements are a standard part of tax administration and reflect legal realities rather than political preferences.
- **ATO independence:** The ATO operates independently of government in litigation decisions.
**The claim contains factual accuracy but misleading framing.**
While it is true that Hockey did not mention the News Corp payout when announcing the MYEFO, this omission is somewhat understandable from a political communications perspective - highlighting a massive payout to a media organization that had been critical of your political opponents would have been politically awkward, especially given the timing during the transition to government.
* * * *
However, the framing that this represents "corruption" (as implied by the category label "abc corruption tax") is misleading.
The Coalition government did not "choose" to give News Corp this money - they inherited a situation where the courts had ruled in News Corp's favor and the ATO (during the election campaign) decided not to appeal.
The 2022 Rio Tinto $1 billion settlement under Labor was even larger than the News Corp case, demonstrating that such outcomes are not unique to any particular government.
The factual claims are accurate - the $882 million payout occurred, it was a significant factor in the budget deterioration, and Hockey did not mention it when outlining the budget position.
The payout resulted from a court decision on a dispute predating the Coalition government, not from any discretionary decision by the Coalition to benefit News Corp.
The factual claims are accurate - the $882 million payout occurred, it was a significant factor in the budget deterioration, and Hockey did not mention it when outlining the budget position.
The payout resulted from a court decision on a dispute predating the Coalition government, not from any discretionary decision by the Coalition to benefit News Corp.