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  • Provision of general purpose financial statements by significant global entities

    On 3 December 2015 the Senate amended the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015External Link to require corporate tax entities that are significant global entities (SGEs) to give the Commissioner a general purpose financial statement if they do not lodge one with the Australian Securities and Investments Commission (ASIC).

    The financial statement must be for the financial year that most closely corresponds to the income year, and it must be given to the Commissioner by the time the entity is required to lodge its income tax return.

    The amendment applies to income years commencing on or after 1 July 2016 (for most taxpayers this means lodgment of the statement will not be required until early 2018).

    An entity is an SGE for an income year if it is:

    • a global parent entity with an annual global income of A$1 billion or more, or
    • a member of a group of entities consolidated (for accounting purposes) where the global parent entity has an annual global income of A$1 billion of more.

    This definition includes both:

    • Australian-headquartered entities (with or without foreign operations)
    • the local operations of foreign headquartered multinationals

    If global financial statements have not been prepared for the global parent entity, the Commissioner may make a determination that based on information available to him, the annual global income of the entity would be A$1 billion or more for the period.

    The Bill, as amended, received Royal Assent on 11 December 2015.


    In August 2016 we commenced the first round of consultation with external stakeholders on the administrative arrangements for the provision of general purpose financial statements by issuing a discussion paper. Stakeholders were invited to provide feedback on the proposed arrangements, and to raise technical issues for our consideration. The aim of the consultation was to ensure we can implement the measure in a way that minimises compliance costs for affected entities.

    The discussion paper was released for comment on the ATO’s website in the week commencing 15 August. The consultation period closed on 30 September 2016.

    Legislation and supporting material

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      Last modified: 19 Feb 2018QC 47518