From 1 July 2024, Australia introduces public country-by-country reporting (CbCR). Learn what multinationals must disclose, compliance risks, and how BOA & CO. can help you prepare.
Australia has taken a major step toward greater corporate tax transparency with the introduction of its public country-by-country reporting (CbCR) regime. For multinational enterprise (MNE) groups operating in or through Australia, this is more than a compliance exercise — it’s a shift in how tax information will be scrutinised by regulators, investors, the media, and the public.
From 1 July 2024, in-scope groups will be required to publicly disclose a range of tax and financial information that was previously confidential. The first reporting obligations will apply for income years beginning on or after this date.
What Must Be Disclosed?
Unlike the OECD’s confidential CbCR standard, Australia’s rules require public disclosure on a jurisdiction-by-jurisdiction basis. This includes:
- Revenue (related and unrelated party)
- Profit (loss) before income tax
- Income tax paid and income tax accrued
- Number of employees
- Tangible assets (excluding cash or cash equivalents)
- Details of the group’s business activities in each jurisdiction
This information must be made available on an Australian Government register, creating new reputational considerations for MNE groups.
Who Is Affected?
The rules apply to:
- MNE groups with global consolidated revenue of AUD 1 billion or more
- Australian-headquartered groups, as well as significant foreign-headquartered groups with local operations
- Income years beginning on or after 1 July 2024, meaning first reports will be due in 2025
Key Implications for Multinationals
1. Increased Transparency Risk
- Tax information will be publicly accessible, enabling cross-border comparisons
- Stakeholders such as NGOs, investors, and media will scrutinise data for signs of “profit shifting”
2. Consistency with Other Disclosures
- Public data must align with financial statements, OECD CbCR filings, and ESG reports
- Inconsistencies could attract ATO queries or reputational risk
3. Operational Challenges
- Collecting, reconciling, and validating data across multiple jurisdictions will require robust systems and controls
- MNEs should begin testing data collection processes now to ensure accuracy
How BOA & CO. Can Help
At BOA & CO. Chartered Accountants, we support clients in preparing for the new transparency regime by:
- Reviewing current CbCR processes and data quality
- Designing frameworks for consistent public disclosure across reports
- Advising on stakeholder communication strategies to mitigate reputational risks
- Assisting with ATO engagement on reporting expectations
As one of Australia’s fastest-growing chartered accounting firms, BOA & CO. combines tax expertise, business advisory, and proactive strategies to help you navigate this regulatory change with confidence.
The Bottom Line
Australia’s public CbCR regime represents a paradigm shift in tax transparency. For CFOs and tax leaders, this is not just about compliance — it’s about managing tax risk, governance, and reputation in a world where tax data is in the public domain.
📩 Contact BOA & CO. Chartered Accountants today to ensure your group is ready:
📞 1300 952 286
📧 [email protected]
🌐 www.boanco.com.au
Stay transparent. Stay compliant. Stay ahead.