When a major taxpayer decides to leave

Students, here's a story that caught my attention. An Australian multimillionaire says he has paid more than $100 million in tax, yet has faced relentless scrutiny from the Australian Taxation Office. He has now moved to Dubai.

I'm talking about Adrian Portelli, the 'Lambo Guy' familiar to viewers of The Block. In 2024, he bought all five properties from the show for a combined $15.03 million. His LMCT+ business operates membership rewards and promotions involving cars and property.

In a recent podcast interview, Portelli said he paid $80 million in tax over just 24 months, and more than $100 million in total. He complained that his companies were audited almost monthly and that he felt treated like a criminal. He has also previously claimed that frozen bank accounts prevented his business from paying wages and bills.

These are his claims. The full details of his tax disputes and the circumstances behind the alleged account freezes are not public.

How could tax payments equal 80% of revenue?

One number jumped out at me: Portelli said that, at one point, tax payments amounted to 80% of his business revenue.

Hang on. Australia's company tax rates are generally 25% or 30%, depending on the company. How do we get to 80%?

I asked my AI sidekick to investigate. One possible explanation is PAYG instalments, the system under which businesses prepay income tax based on earlier assessments.

Imagine a business has a highly profitable year, followed by a 40% drop in revenue. Its expenses may not fall anywhere near as quickly, but its tax instalments may initially reflect the stronger previous year. Add other tax payments due and the cash-flow squeeze can be severe.

To be fair to the ATO, a business expecting lower income can generally vary its PAYG instalments, although underestimating can lead to interest or other consequences. We also do not know how Portelli calculated his 80% figure, so it would be wrong to describe it as an 80% company income-tax rate.

There is another side to the story. On 27 March 2026, a South Australian court fined his company Xclusive Tech $40,000 over unauthorised lottery activities. Portelli himself was acquitted of the nine related assistance charges brought against him.

Regulators have a legitimate job to do. My question is how that job is carried out, and what it costs businesses to comply.

Profits on paper won't pay tomorrow's wages

Governments want entrepreneurs to invest, employ staff and grow. At the same time, businesses must keep up with tax returns, licensing, audits and compliance obligations. Each requirement may have a reason, but the total workload adds up.

Large firms can hire in-house tax specialists and compliance teams. A small-business owner may be running the business all day and doing the paperwork at night.

And if an operating account is suddenly unavailable, how are staff and suppliers paid? Profit on paper and cash in the bank are two very different things.

Does moving to Dubai end your Australian tax obligations?

Dubai can be attractive from a tax perspective. The UAE generally does not tax an individual's employment salary, and its corporate tax system generally charges 9% on taxable profits above the applicable threshold, subject to its rules.

But you cannot simply buy a plane ticket and declare yourself finished with the ATO.

Australian tax residency depends on the facts, including your home, family and ongoing ties. Even after becoming a non-resident, Australian-source income can remain taxable. Changing residency can also trigger capital gains tax consequences for certain assets.

Moving house is one thing. Breaking up with the ATO is quite another! 😂

Portelli says his relocation was planned over several years, and that safety, infrastructure and business opportunities also influenced his decision. We should not pretend tax was the sole factor.

What does $100 million in tax actually mean?

Let's put the scale into everyday terms.

For 2026–27, someone earning $100,000 in Australian taxable salary would ordinarily pay around $22,520 in income tax plus the 2% Medicare levy, before individual variations.

On that comparison, $100 million is roughly the equivalent of a full year's income tax and Medicare levy from 4,440 workers earning $100,000 each.

Portelli says $80 million of his total was paid within two years—an average of $40 million annually, or the equivalent of about 1,776 such workers per year.

This is only a way to understand the amount. His claimed total may include different taxes, and accumulated past payments are not the same as recurring annual revenue. If his businesses remain active in Australia, they may still owe Australian tax even after he personally relocates.

One millionaire leaving does not prove that Australia is experiencing an exodus of entrepreneurs. But if more business owners really are taking their investment elsewhere, it is worth asking why.

I have no objection to tax being collected lawfully or businesses being properly regulated. I do wonder whether governments spend enough time thinking about what encourages people to keep building businesses and creating jobs here.

A government can keep asking its golden goose for eggs. But the goose might have wings—and a passport.