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Large Business Stewardship Group key messages 9 March 2023

Information about the key topics discussed at the Large Business Stewardship Group meeting on 9 March 2023.

Last updated 30 March 2023


The ATO informed members of the review of consultation processes. Members were provided with the current Large Business Stewardship Group (LBSG) Charter and revised ATO Consultation Framework for feedback.

ATO consultation

The majority of ATO consultation is public, open and transparent, however there are situations where consultation needs to be confidential.

The ATO has safeguards in place to ensure the integrity of our consultation processes, including to protect confidential information.

Clear processes and communication of information handling protocols will help ensure sensitive information is handled appropriately.

ATO consultation framework

The ATO Consultation Hub has been working closely with National Tax Liaison Group (NTLG) on the review of the ATO consultation framework.

The ATO undertakes consultation on the administration and interpretation of the tax and super laws. The ATO does not consult on policy changes and the majority of our consultation is public.

The revised framework contains six consultation principles ATO officers should account for during the consultation process and outlines the responsibilities associated with key roles.

The ATO Consultation Hub maintains consultation information on the ATO’s website and is the central coordination point for all ATO consultation.

LBSG Charter

The LBSG Charter was revisited, including identification of confidential material or discussions. The ATO agreed to update the Charter to reflect member discussion and agreement at the meeting.

Integrity declarations

LBSG members were informed that the ATO is proposing to introduce an integrity declaration for stewardship group members as a part of governance processes and risk management controls. Some stewardship groups have already tabled the integrity declaration. Some feedback has been received and we will be redrafting the current integrity declaration, after which it will be decided if it is necessary for the LBSG.

Treasury consultation process and review

Most of Treasury’s consultation is public but there are times where some consultation on new policy and legislation needs to be confidential.

During public consultation, where people want to provide information that is confidential, confidentiality is observed.

On confidential consultation, there are broader factors to consider such as security of information, conflict of interest, ethical behaviour, and professional standards.

Members discussed the need for clear processes and integrity of consultation processes in managing risks.


Treasury provided an update on their forward work program and Organisation for Economic Co-operation and Development (OECD) Two-Pillar Solution.

Treasury will soon be releasing draft legislation and explanatory materials for public consultation relating to the policies supporting the government’s multinational tax election commitments on changes to thin capitalisation rules, increased corporate tax transparency and payments for intangibles to low- and no-tax jurisdictions.

Pillar One

OECD public consultation on the building blocks of Pillar One Amount A has concluded. The OECD aims to finalise the technical work and drafting of the Multilateral Convention through which Amount A will be implemented and its Explanatory Statement by mid-2023, in readiness for countries to start signing on.

The technical work on Amount B, relating to the simplification of transfer pricing rules, is also aiming to be completed by mid-2023. An OECD public consultation document on the design elements of Amount B was released in December 2022.

Pillar Two

In December 2022, the OECD published a document on agreed safe harbours and penalty relief and released public consultation documents on the Global Anti-Base Erosion (GloBE) Information Return and tax certainty for the GloBE Rules.

In February 2023, the OECD published administrative guidance that clarifies technical matters associated with the GloBE Rules. The document addresses a wide range of issues dealing with scope, treatment of income and taxes, application of GloBE to insurance companies and transitional rules. The document also includes guidance on the design of Qualified Domestic Top-up Taxes.

It was noted that, subject to final decisions by government, significant work is required to translate the model rules, commentary and administrative guidance into domestic legislation. Ongoing engagement and co-ordination with other tax administrations will be necessary to effectively administer the Pillars.


External members provided an update around current and future transparency disclosures. Noting the proposed country-by-country reporting measures coming soon, members discussed that large corporates generally agree to publishing tax performance data but want to supply context and commentary alongside the data.

Members also discussed how any of this information should be presented to be analysed at aggregate level. Where the data is stored and how it is shared and compared should be considered.

Treasury is considering the design of the transparency policy, in particular how best to set out the rules for companies to satisfy their reporting obligations. The potential for inconsistent reporting would impact the integrity of transparency disclosures.

Corporate tax transparency report

The ATO provided an update on the proposal to publish the 2021–22 corporate tax transparency (CTT) data and report in August 2023, earlier than when CTT data and reports have historically been published from November.

An outline of the proposed timeline was discussed at the LBSG meeting in November 2022. Since then, a sub-group met and provided feedback on the timing of the ATO release of tax transparency data. There was feedback that an early August release will not facilitate some large corporates to provide public contextual information in their current year financial reporting and before the ATO’s release.

Members discussed preferred timing of the release of the CTT data and report. The ATO noted that we were further consulting with several Top 100 taxpayers and this will include a proposed September publishing timeframe. We advised at the meeting this feedback will assist in planning for a September 2023 release date for the 2021–22 CTT data. Further advice will be provided to the LBSG about the timing of future year releases.

Inclusion of high assurance disclosures in Top 100 findings report

The ATO presented the proposed approach to include links to taxpayers’ reports disclosing their high assurance ratings. The Corporate Tax Association (CTA) had previously provided a paper as part of the feedback process which had raised a few concerns about the proposal. The CTA reiterated some of the key themes set out in the paper.

Members discussed their views, with some supportive but many not seeing value in a list and raising concerns in relation to matters such as not providing a full and timely representation of the whole population. The ATO agreed to consider the feedback before making a final decision and will advise members accordingly.

Board of taxation

A new Board of Taxation CEO has not yet been appointed and the Board of Taxation update was provided by Treasury First Assistant Secretary, Marty Robinson.

Tax treatment of Digital Assets and Transactions

The Board has held an extensive public consultation process with stakeholders for the Taxation of Digital assets and transactions review and are currently developing principles.

The Board has been working through the submissions received with key themes emerging including uncertainty by some investors over the tax treatment and the high cost of compliance and complexity of record keeping associated with crypto transactions.

The Board continues to engage with regulatory bodies including the ATO, international revenue authorities and treasury agencies. This review is envisaged to complement cryptocurrency regulatory settings. The report is due to the Treasurer by 30 September 2023.

Board of taxation forward work program

The Board’s forward work program is still to be finalised but is expected to consider the interactions of the Board of Tax’s voluntary Tax Transparency Code with the Government’s tax transparency election commitment.

Compliance risk and emerging issues

The ATO informed members of emerging issues that we are seeing in the market including:

  • The legislative instrument specifying the additional method of working out a pay as you go instalments is due to sunset on 1 April 2024. We are intending on remaking the instrument and will undertake formal consultation in due course.
  • GST classification of certain products is a well-known and prominent risk. Members discussed the risk associated with taxpayers classifying the same product differently and the need for timely guidance. The ATO is reviewing the existing public advice and guidance on classification issues to better address new products as they emerge on the market.
  • There is market activity where some employers are seeking to claim input tax credits on allowances. The ATO’s longstanding view on when an employer is entitled to claim an input tax credit for reimbursements of employee expenses is set out in GST and employee reimbursements. In our assurance reviews, we will seek confirmation that positions adopted are in line with the ATO view.
  • Draft Practical Compliance Guideline PCG 2021/D4 Intangibles Arrangements continues to be revised to reflect feedback from consultation, focused on aspects of the risk assessment framework. We are seeking to introduce risk factors to better enable taxpayers to objectively self-assess their tax risk. The PCG is expected to be finalised this year.
  • The ATO is reviewing arrangements involving the claimed exemptions from interest withholding tax, where we have concerns that the entities do not satisfy the eligibility criteria for the exemptions.

Tax Avoidance Taskforce

The ATO provided an update to members on the extension and expansion of the Tax Avoidance Taskforce including:

  • The extension and expansion of the Taskforce allows us to maintain our existing experts plus substantially grow our existing Taskforce programs and focus on new priority areas, enabling us to look at the tax arrangements of more public groups, multinationals and privately owned and wealth groups, and their advisors.
  • This will see voluntary compliance at a higher level than compliance after ATO intervention at the commencement of the taskforce. We expect the new funding to generate a further $2.8 billion in total revenue effects.
  • We are looking to recruit across our compliance, law and data areas to deliver this work.

Other business

The ATO is seeking nominations for a working group to discuss the ATO’s early engagement with taxpayers in the Top 1,000 combined assurance program.


Attendees list




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


Faith Harako, Public Groups and International


Hector Thompson, Public Groups and International


Kate Wilson, Enterprise Strategy and Design


Melissa Spurge, Public Groups and International


Michael Ingersoll, Public Groups and International

Australian Banking Association

Darren Norman

Australian Petroleum Production and Exploration Association

Michael Fenner

Australian Retirement Trust

Ian Roberts

BHP Billiton Limited

Premila Roe

Big 4 Representative

Cindy Perryman


Irene Filippone

Business Council of Australia

Pero Stojanovski

Corporate Tax Association

Michelle de Niese (Co-chair)

Group of 100

Marc Lewis

Law Council of Australia

Adrian Varrasso


Megan Williams

Property Council of Australia

Kelly Wong


Brian Purdy

The Tax Institute

Pete Rhodes


Apologies list




Rebecca Richards, Public Groups and International


Angela Giunta


Diane Brown