Instructions to complete items 1 to 2 in the tax return that relate to the partnerships business description and status.
Describe as accurately as possible the business activity from which the partnership derived the highest gross income – for example, beef cattle breeding, vegetable growing, clothing manufacturing, confectionary wholesaling, domestic appliance retailing, or share trading.
Do not use general descriptions, such as farming, manufacturing, wholesaling or investing.
Print at label A the appropriate industry code for the partnership’s main business.
Use the Business industry code tool to find the code that describes your main business activity as accurately as possible. The industry code is made up of 5 digits, for example, if the industry is dairy cattle farming, the code on the tax return is shown as 01600.
An incorrect code may result in either:
- you not receiving a necessary service or material from us
- incorrect targeting of audits.
The industry code provided is also used to publish industry benchmarks in taxation statistics.
The industry coding regime we use is a modified version of the Australian and New Zealand Standard Industrial Classification (ANZSIC) produced jointly by the Australian Bureau of Statistics (ABS) and Statistics New Zealand.
Complete the following:
- B1, B2 and B3 – Status of business
- Z2 – Consolidation status
- G1 – Significant global entity
- G2 – Country-by-country reporting entity
Print X at labels B1, B2 or B3 to show the appropriate description for the status of the business. If more than one selection applies, select the first applicable option.
If none of the selections applies, leave labels B1 to B3 blank.
Print X at label Z2 if the partnership was a subsidiary member of a consolidated group or MEC group at any time during the income year.
In this case, the tax return is for the period or periods during which the partnership was not a subsidiary member of a consolidated group or MEC group in 2022–23 (non-membership periods). You must complete applicable schedules for periods attributable to the non-membership period.
For information about reporting multiple non-membership periods during the year, see C9-5-110 in the Consolidation reference manual.
Print X at label G1 if the partnership was a significant global entity (SGE) for the income year.
An entity is an SGE if it is:
- a global parent entity with an annual global income of A$1 billion or more
- a member of a group of entities consolidated for accounting purposes, and one of the other group members is a global parent entity with an annual global income of A$1 billion or more, or
- a member of a notional listed company group, and one of the other group members is a global parent entity with an annual global income of A$1 billion or more.
A notional listed company group is a group of entities that would be required to be consolidated for accounting purposes as a single group, on the assumption that an entity of the group were a listed company. Disregard any exception in accounting principles that may prevent an entity from consolidating with other entities.
An entity is also an SGE if it is a global parent entity, or if:
- it is a member of an actual or notional accounting consolidated group which includes a global parent entity, and
- the global parent entity has been given a notice by the Commissioner determining that its annual global income would have been A$1 billion or more for the period had global financial statements been prepared.
For more information, see Significant global entities.
Print X at label G2 if you were a country by country (CBC) reporting entity for the income year.
An entity is a CBC reporting entity if it is:
- a CBC reporting parent, or
- a member of a CBC reporting group, and one of the other group members is a CBC reporting parent with an annual global income of A$1 billion or more.
A CBC reporting group may be a group that is consolidated for accounting purposes as a single group or a notional listed company group. A notional listed company group is a group of entities that would be required to be consolidated as a single group on the assumption that an entity of the group were a listed company.
Unlike the SGE definition, the exception to consolidation in the accounting principles related to investment entities is not disregarded; that is, if applicable, when determining whether an entity is a CBC reporting entity, the investment entity exception in the accounting principles should be applied.
If an entity was a CBC reporting entity for the whole or part of the preceding income year, it may have CBC reporting obligations.
For more information, see Country-by-country reporting.
Continue to: Business income and expenses – item 5