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:

• combating multinational tax avoidance
• diverted profits tax

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.