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
- 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.