Google Australia has restructured and vowed that in the future it will count its lucrative advertising revenue locally on its tax bills.
Its 2015 tax bill hit $16 million, but still remains a fraction of its overall profit.
The accounts come ahead of Tuesday's federal budget where the Turnbull government is expected to include another round of fresh measures aimed at ensuring multinationals pay more local taxes.
Google, like a number of other multinationals, has had to restructure its tax affairs to avoid being hit with tougher penalties under laws passed by the federal government at the start of the year. 
The government's Multinational Anti-Avoidance Law, which was introduced days before former treasurer Joe Hockey lost his post, resulted in a number of companies sitting down with the Australian Taxation Office to negotiate so that they do not get hit with hefty penalties under the laws.
Google's financial accounts, lodged with the Australian Securities and Investment Commission on Friday, confirm this.
  Advertising revenue heads offshore  
The accounts, for the year ending   December 31, 2015, show that Google is still not counting income it earns through advertising locally on its lucrative search engine business, which is estimated at more than $2.5 billion. 
This is revenue that instead gets booked offshore in the low-tax nation of Singapore. 
But Google has said  this will change in the future. "Effective 1   January, 2016, Google Australia Pty Limited restructured its business such that it will recognise revenue from the marketing and selling of certain services and products to Australian based customers," the accounts state. "In 2016, the company will recognise revenue from the marketing and settling of certain services and products to Australian-based customers."
The accounts show that in 2015 Google paid $16 million tax on revenue of $501.8 million and profit of $50 million. 
Revenue was up from $438.7 million in 2014, but profit was down from $58.7 million in 2014. After income tax, profit amounted to $47.1 million - down from $49.3 million in 2014.
Google's cashflow statement said income taxes paid in the 2015 period was $16.6 million, up from $13.7 million the year before. 
But its income tax expense - a more accurate measure - was $16 million, up from $11.7 million a year earlier. After an adjustment for prior year tax and deferred tax expenses, its total income tax expense came in at $2.86 billion, down from $9.46 billion the year before.
The accounts also show it has $71.6 million of what is known as "deferred tax assets" on its balance sheet, a credit which it can theoretically use to reduce future tax bills over an extended period of time. 
  Google under audit  
Google is among a number of technology companies - including Apple, Microsoft, BHP Billiton and Rio Tinto - that are under audit by the Australian Taxation Office for their use of marketing hubs in Singapore.
There are estimates that Google's tax rate in Singapore is as low as 10 per cent.
A Google Australia spokesman said:  "Google paid $16 million in corporate taxes and $19.8 million in payroll and other taxes as our workforce grew to around 1200 people. We invested more than $400 million into our Australian operations."
A number of politicians have spoken out against multinational tax avoidance following the Senate inquiry into corporate tax avoidance.
Treasurer Scott Morrison told Fairfax Media: "The Government welcomes the positive steps taken by Google to restructure so profits are recognised in Australia and taxes are paid on profits generated here."
Shadow assistance treasurer Andrew Leigh said "tax avoidance undermines confidence and unfairly burdens workers and small businesses who do contribute".
He said Labor had a policy to fight multinational profit shifting, and "Australians are right to question why the federal government is silent on tax avoidance, but quick to defend banks against a royal commission".
Greens Senator Peter Whish-Wilson said the tougher laws against multinationals were clearly working: "This is what Australians want to see more of - political parties working together to get outcomes."