Public CBC reporting: new transfer pricing obligations in Australia
Australia is ushering in a new era of corporate tax transparency with the introduction of the Public Country-by-Country (CBC) Reporting Regime, effective for reporting periods starting 1 July 2024. Large multinational enterprises (MNEs) operating in or through Australia must act now to ensure compliance and avoid substantial penalties.
What is Public CBC Reporting?
Public CBC is a new reporting regime that was introduced by the ATO and requires MNEs to disclose certain tax information with the general public. The MNEs in scope of this new regime are those of Significant Global Entity (SGE) status with total global revenue exceeding $1 billion which also have significant Australian operations, as measured by having $10M or more revenue from Australian sources.
Reporting Deadlines
The regime is applicable to reporting periods starting on or after 1 July 2024, and groups will have 12 months post the reporting period end date to make their lodgment with the ATO. This means that for entities with a 30 June year-end, the first report is due 30 June 2026; for those with a 31 December year-end, it's 31 December 2026.
Public CBC reporting does not replace CBC reporting
There are key differences between the existing Country-by-Country (CBC) Reporting and new Public Country-by-Country Reporting requirements. The table below outlines some key differences
|
Requirement |
COUNTRY BY COUNTRY REPORT (CBC) |
PUBLIC COUNTRY BY COUNTRY REPORTING (PCBC) |
|
Data availability |
Confidential filing for ATO internal purposes only |
Public disclosure with information available for public use (cyclical) |
|
Law application |
Mandated by law since FY2016 |
Enacted from FY2025 |
|
Reporting scope & thresholds |
Applies to all significant MNEs with an Australian presence (no minimum Australian-sourced income) |
Narrower population, applies to a subset of significant MNEs with substantial Australian presence (minimum threshold Australian-sourced income) |
|
Who can report |
Ultimate parent or a designated member |
Ultimate parent (although can nominate member as authorised representative) |
|
Lodgment format |
OECD-specified XML format (with some Australian modifications) |
Australia-specified XML format |
|
Compliance timeline |
Annual filing, due 12 months after year-end |
Annual filing, due 12 months after year-end |
|
Reporting channel |
Online portal file transfer or Standard business reporting (SBR) |
Via email to PublicCBCReports@ato.gov.au |
|
Disclosure content |
|
|
|
Non-compliance risks |
Hefty fines for non-compliance, but no public transparency risk |
Hefty penalties and increased reputational & governance risks, public scrutiny on tax profile |
Penalties for non-compliance
Similar to other SGE obligations, non-compliance penalty for groups can be substantial, reaching up to AUD$825,000. This, combined with ATO's toughening position around late & lodgment failures and refusing extension or penalty waivers, means that groups will really need to be prepared and have in place the process and or tool to fulfil these new obligations.
Leveraging technology for compliance
Purpose-built tax software like CCH Integrator can streamline the reporting process. Already a trusted solution for CBC and Local File compliance, the new Public CBC module, which is coming soon, consolidates key transfer pricing requirements into one platform – reducing manual effort and risk.
Next Steps for CFOs and Tax Leaders:
- Assess whether your entity qualifies under the new regime.
- Register with the ATO and nominate representatives.
- Review internal systems for data collection and reporting.
- Consider applying for exemptions if warranted.
- Explore technology solutions to support compliance.
For more information about the upcoming CCH Integrator Public CBC Reporting product visit: https://www.wolterskluwer.com/en-au/solutions/cch-integrator/tax-compliance/public-country-by-country-reporting