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  • Guidance on the expanded SGE definition

    We have updated our guidance to reflect recent legislative changes that broaden the definition of a significant global entity (SGE). The SGE definition now applies:

    • to entities belonging to groups of entities whose annual global income is over A$1 billion
    • regardless of whether audited consolidated financial statements have been prepared

    The changes apply to income years commencing from 1 July 2019.

    What this means

    Entities previously not in scope of the SGE definition may now be considered an SGE, even in circumstances where they belong to a group that has not prepared audited consolidated financial statements. This includes:

    • high wealth individuals, partnerships, and trusts belonging to certain private groups
    • entities considered to be non-material to a group under the accounting standards
    • certain investment entities (and those they control)

    The amendments also introduce the concept of country-by-country (CBC) reporting entity to define the entities within the expanded SGE population that:

    • have CBC reporting obligations
    • may be required to give the Commissioner of Taxation general purpose financial statements.

    The updated guidance includes examples to illustrate how an entity can be an SGE and CBC reporting entity by being a member of a notional listed company group. 

    For further information or assistance, email SGE@ato.gov.auThis link opens in a new window

    See also:

    Last modified: 22 Dec 2020QC 64485