On 25 October 2022, as part of the 2022–23 federal Budget, the government announced it will introduce reporting requirements for relevant companies to enhance the tax information they disclose to the public.
The following changes will apply to an entity’s reporting obligations in respect of income years commencing from 1 July 2023:
- Australian public companies (listed and unlisted) to disclose information about subsidiary entities including the tax residency of each of those entities
- tenderers for Australian Government contracts worth more than $200,000 to disclose their country of tax domicile, by supplying their ultimate head entity’s country of tax residence.
The subsidiary disclosure measure is now law. The Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Act 2024External Link received Royal Assent on 8 April 2024 amending the Corporations Act 2001 introducing new mandatory disclosures for inclusion in annual financial reports.
The government will also continue to engage with stakeholders on its commitment to introduce a public country-by-country reporting regime which will apply to income years commencing from 1 July 2024. This measure is not yet law.
For more information, see:
- Consultation paper, August 2022 – Multinational Tax Integrity and Tax Transparency (PDF, 516KB)This link will download a file on the Treasury website
- Budget 2022–23, Budget Paper No. 2: Budget MeasuresThis link will download a file – Treasury: Multinational Tax Integrity Package
- Treasury paper – Summary of consultation process outcomes (PDF, 164KB)This link will download a file on the Treasury website
- Country of tax residency disclosuresExternal Link on the Treasury website.