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  • Significant global entities

    Certain measures only apply to entities that meet the definition of a significant global entity (SGE). Subdivision 960-U of ITAA 1997 currently defines SGE as a global parent entity or member of that global parent entity’s group with annual global income of A$1 billion or more. The SGE concept is not limited to entities that are members of a multinational group. An SGE can also be an entity in a group that only operates in Australia.

    Amendments to the law in 2020 extended the definition of SGE to include:

    • groups headed by individuals
    • trusts
    • partnerships
    • private companies.

    The amendments apply in relation to income years or periods commencing on or after 1 July 2019 with penalties applying from 1 July 2020 to entities that were not previously SGEs. SGEs may be subject to increased penalties and compliance measures including:

    We focus on entities that:

    • meet the SGE definition but do not identify as one on their tax return
    • fail to lodge relevant and complete documentation as required.
    Last modified: 01 May 2023QC 69448