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NSW Police Commissioner Karen Webb has said she is 'confident' that a dog squad officer is not to blame for the deaths of two police dogs, which were found dead in a police vehicle in Sydney's south.

Their handler made the tragic discovery when they went to check on police dog Xtra and development dog Soldier about 12.30pm yesterday, NSW Police said.

They were at a development day at a Lucas Heights facility and were "in the air-conditioned pods of their purpose-built police vehicles", police said.

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NSW Police said the animals were found dead when the handler carried out a "routine check".

The canines were taken to a specialist veterinary clinic but couldn't be revived.

Commissioner Webb said today that an investigation has been launched, but she was "confident" there was no wrongdoing by the officer.

"I am confident that there has been no human error … we are looking at a technical, engineering type problem," Webb said.

"I spoke to the officer this morning, he is devastated, he had the very difficult task of going home yesterday … and telling his family."

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Assistant Commissioner Stephen Hegarty explained that the police dog squad vehicles have a dedicated pod in the back of the car where the dogs are kept.

A specially designed engine system keeps running and pumps air-conditioning into the pod, even when the officers aren't inside the car.

Hegarty said upon the discovery of the dogs, officers realised that the engine had stopped running, which stopped the air conditioning in the pod.

"At this stage, it seems like the engine and aircon were operating correctly at 10.30am," he said.

"We have really good equipment we don't understand why that has taken place."

"It's standard for the dogs to be in the pod for that amount of time … those dogs can be in the rear of that car at nighttime for a long amount of time."  

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He also said there's an alarm system that goes off when the engine stops, and the alarm had been triggered.

"It did go off at that time, but when they got down there it was too late." 

The probe will be overseen by detectives attached to Sutherland Police Area Command and Fleet Services, which takes in the Lucas Heights area.

Webb paid tribute to the German shepherds, which she said were highly trained.

"Today is a very sad day for the dog unit and the thoughts of the whole police family are with them," she said.

"We owe it to PD Xtra and DD Soldier to conduct a thorough investigation."

The temperature in Lucas Heights peaked today at 27 degrees about 12.30pm. The RSPCA warns it can be 47 degrees in a car within an hour when it's just 22 degrees outside, but police would not comment on whether heat was a factor.

Hegarty said the loss would be felt deeply.

"Our focus is on the welfare of all staff involved with ongoing support services made available to them," he said.

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Xtra had been with the force since 2018 and was working out of the Newcastle and Central Coast region while Soldier only started with the dog unit in February this year for training and development.

He was involved in several arrests publicised by the dog unit, including finding an alleged offender hiding under a house in Mereweather and tracking a man and woman through heavy bushland in 2021.

Xtra was among a crop of five canine recruits named by chronically ill kids from The Children's Hospital at Westmead in 2017.

At the time, police said involving the community in naming was a long running tradition and the hospital said it was a "special" memory the patients would treasure".

Almost a third of all large companies operating in Australia didn't pay any tax in the 2022-23 financial year.

The Australian Taxation Office's (ATO) Corporate tax transparency report revealed that 1253 large entities didn't pay any tax that year.

While an increase on the year before from 831, the proportion of businesses not paying tax has remained steady at 31 per cent.

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The ATO said the majority of those companies didn't have to pay tax due to an accounting or tax loss.

Others used tax losses from the previous year to negate their tax bill, while a small proportion utilised tax offsets.

The ATO said tax avoidance has reduced in recent years.

"We continue to see improvement in the tax compliance of large businesses, reflecting how the ATO's Tax Avoidance Taskforce has supported improvement in voluntary compliance in addition to strong compliance actions," ATO Deputy Commissioner Rebecca Saint said.

Overall, the amount collected by the ATO from big businesses rose to around $100 billion.

Just under $98 billion of that was income tax – a record figure that was up 16.7 per cent from the year before.

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"This is a great result for the Australian community," ATO Deputy Commissioner Rebecca Saint said.

"Tax paid in 2022–23 was again the highest since (corporate tax transparency) reporting started.

"When you include the additional tax revenue raised by the Tax Avoidance Taskforce for the year, we collected around $100 billion from large corporates in 2022–23."

According to the ATO, the amount of tax not paid by big businesses was less than 5 per cent.

"Corporate tax compliance in Australia sets the bar for the rest of the world, and these results in part reflect years of sustained effort from the ATO's Tax Avoidance Taskforce to drive and support increased tax compliance by large businesses," Saint said.

"Our tax gap estimates show that after ATO compliance activities, large corporates paid 96 per cent of all income tax they should have for 2021–22.

"As they should be, large corporate groups are amongst the highest in net tax performance of all population segments."

The mining sector paid more than half of all tax from large corporations, while oil and gas companies accounted for more than 10 per cent.

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