Regulatory update – Australia
In March 2024, the Australian Federal Government passed a new law requiring all Australian public companies to disclose information about their consolidated entities – including their country of tax domicile – in their annual financial reports.
- Michaëlla Moongen
The Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023 modifies the Corporations Act 2001.
It introduces the consolidated entity disclosure statement (CEDS), a new component of the annual financial report.
The following information should be included in each consolidated entity’s and the parent company’s CEDS:
- Entity name
- Entity status
- Body corporate, partnership, or trust
- Trustee of a trust, partner in a partnership, or participant in a joint venture.
- If body corporate: place of incorporation and percentage of the entity’s issued share capital held by the public company at the end of the financial year.
- Tax status
- Tax status at the end of the financial year – Australian or foreign resident
- If foreign resident: list of each foreign jurisdiction in which the entity was a tax resident
The requirement applies to all public companies, listed and unlisted, and applies for the first time for financial years ending on or after 30 June 2024. Company directors are required to include a statement within their directors’ declaration confirming that the CEDS is ‘true and correct’.
Entities that are not required to prepare a consolidated entity disclosure statement will be required to make a statement to this effect.
