New Public Country-by-Country Reporting Requirement

Posted at 13:36h in Business, News by Simmons Livingstone

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The Australian Taxation Office (ATO) has introduced a new reporting requirement for relevant multinational entities to disclose tax information on a Country-by-Country (CBC) basis, annually. This measure supports the Government’s commitment to ensuring multinational entities pay the correct amount of tax.

Here’s what you need to know:

Understanding the new reporting requirement

As part of the 2022-2023 Budget, the Government announced new reporting requirements for relevant multinational entities to enhance public tax transparency. This measure was enacted on 10 December 2024 and applies to reporting periods commencing on or after 1 July 2024. Public CBC reports must be submitted to the ATO within one year of the reporting period’s end.

Who does this apply to?

Public CBC reporting applies to Ultimate Parent Entities (UPEs) that meet all of the following conditions:

They are a CBC reporting UPE for a period that includes all or part of the preceding reporting period;
They are a member of a CBC reporting group during the reporting period;
At any point during the reporting period, they or a member of their group is an Australian resident or a foreign resident with an Australian permanent establishment;
They have an aggregated Australian-sourced turnover of $10 million or more for the income year;
They are not an exempt entity or included in a class of exempt entities.

What this means for businesses

Businesses that qualify as Public CBC reporting entities need to take steps to understand their obligations, gather the necessary data and comply with the reporting timeline to avoid penalties. Simmons Livingstone offers expert advice to help businesses navigate this process effectively.

If you’re unsure about your obligations or need support with Public CBC reporting, please contact Simmons Livingstone on 1800 618 800 or via email at admin@simmonslivingstone.com.au.