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Large Business Stewardship Group key messages 23 March 2022

Information about the key topics discussed at the Large Business Stewardship Group meeting held on 23 March 2022.

Last updated 16 June 2022

Compliance risks and emerging issues

The ATO provided an update on compliance risks and emerging issues.

Legal professional privilege (LPP) protocol

Consultation on the legal professional privilege draft protocol occurred last year. It has been revised to address feedback on the cost of compliance with the protocol, dispute resolution issues and the application of waivers. Finalisation of the protocol is expected in June 2022.

Loss carry back

The loss carry back (LCB) discussion covered how to show LCB in 2022 income tax returns and what happens when an entity joins a consolidated group before the end of the financial year. Web guidance will be updated to reflect this.

Top 1,000 Next Actions Program

The ATO informed members how taxpayers are addressing the issues identified by undertaking their own corrections and that there has been an increase in revenue/capital issues in transfer pricing cases. Feedback on timing was provided by members. The ATO will share findings so that clients picked for next action reviews can be well prepared.

Members’ feedback

PAYG instalment variations

Members noted that it is difficult to estimate instalment variations within the 15% margin and avoid penalties, and that there is a need for a proactive process to avoid penalties and for remission requests.

The ATO advised that there are voluntary disclosure provisions and a range of remission options available, and that we would look into the issues raised.

De-minimis exemption for low-risk entities/transactions

Members noted the de-minimis exemption for low-risk entities/transactions is time consuming and if small, the resourcing is not justified, particularly for start-ups with significant expenses.

The ATO advised that the first year of applying a de-minimis exemption is difficult but is easier in the follow-up year. The ATO will review how much work is needed to comply.

Advance pricing arrangement program

A review of the advance pricing arrangement (APA) program will be conducted in 2022 to focus on how the program provides certainty to taxpayers and encourages cooperative compliance. The review will consult widely including with Large Business Stewardship Group members. There was a general discussion about the time taken to obtain an APA and how the APA process interacts with justified trust processes.

Top 1,000 income tax and GST assurance programs

The ATO will update the GST component of the Combined Assurance Review program. Proposed updates include:

  • separate assurance ratings for each focus area
  • a meeting with taxpayers once all information is received, to review
  • reviewing a taxpayer’s data testing to ensure it is compliant with ATO guidance
  • an e-audit where there are specific industry risks, issues identified, or we are unable to use the GST Analytical Tool (GAT).

Tax risk management guide for Top 1,000

Members noted the guidance was excellent and provided feedback that achieving a stage 3 rating is an issue with most taxpayers due to budget constraints and costs involved in getting external sign off. Members queried whether the stage 3 rating can be based on risk profiling by industry and the size of the company. The ATO will look at member feedback and the cost of independent reviews.

GST Justified trust reviews

Members provided feedback that the ATO ensure the questions are tailored and to try to stagger our approach when there are several reviews, requests for information in progress. Members noted that the GAT is not suitable for some industries such as the property industry. The ATO advised that the aim is to improve engagement, prioritisation and materiality for Top 100 GST reviews.

Board of Taxation

The capital gains tax rollover review report is due 22 April 2022.

The Board of Taxation is undertaking a review into the appropriate policy framework for the taxation of digital transactions and assets in Australia. The terms of referenceExternal Link were released by the government on 21 March 2022.


Treasury provided an update on recent legislation and other key topics:

  • Intangible assets depreciation consultation ended in December 2021. The Bill was introduced in Parliament on 9 February 2022.
  • The loss carry back extension amendments were passed on 22 February 2022.


Treasury provided an update on the latest developments with Organisation for Economic Cooperation (OECD) Pillar 1 and Pillar 2 programs:

  • Pillar 1 (Amount A) and the extractive industry exclusion – There is a big push on timeframes and model rules to support implementation, with a potential Multilateral Convention signing ceremony mid 2022.
  • Pillar 1 (Amount B) – The transfer pricing rules simplification focused on needs of developing economies is progressing on a separate timeline and is to be finalised by the end of 2022.
  • Pillar 2 – OECD has invited public input on the Implementation Framework of the global minimum taxExternal Link with comments due 11 April 2022.
  • From a business perspective, compliance costs have been raised with some suggesting grounds for safe harbours. Treasury will continue to consult with both pillars.


Attendees list




Rebecca Saint (Co-chair), Public Groups and International


Faith Harako, Public Groups and International


Michael Ingersoll, Public Groups and International


Rebecca Richards, Public Groups and International

Australian Banking Association

Darren Norman

Australian Petroleum Production and Exploration Association

Michael Fenner

Australian Retailers Association

Abs Osseiran

Australian Super

Bevan Grace

BHP Billiton

Premila Roe

Big 4 Representative

Cindy Perryman

Business Council of Australia

Pero Stojanovski

Corporate Tax Association

Michelle de Niese (Co-chair)

Elders Limited

Vanessa Trengove

Law Council of Australia

Adrian Varrasso


Megan Williams

Property Council of Australia

Kelly Wong

Seven West Media

Angela Giunta


Brian Purdy

Tax Institute of Australia

Pete Rhodes


Marty Robinson


Maryanne Mrakovcic

Guest attendees

Guest attendees list




Cecilia Zhao, Public Groups and International


Donna Lyons, Public Groups and International


Harjit Singh, Public Groups and International


Hector Thompson, Public Groups and International


Simon Hellmers, Public Groups and International


Tom Wheeler, Public Groups and International

Board of Taxation

Michelle Calder


Apologies list



Adelaide Brighton Cement

Mimi Ferguson


Irene Filippone

Board of Taxation

Christina Sahyoun

Group of 100

Marc Lewis