In our Winter 2025 Client Alert, we highlighted the key features of the new public country-by-country (CbC) regime for large groups commencing from 1 July 2024, with first reporting due by 30 June 2026. Since then, the ATO has released further guidance that should be considered.
The regime applies to groups exceeding AUD 1 billion global turnover and AUD 10 million Australian-sourced turnover, and operates separately from existing “private” CbC rules.
Following enactment on 10 December 2024, the Australian Taxation Office (ATO) released the voluntary Public CbC registration form (NAT 75645) in June 2025 and draft guidance PS LA 2025/D1 in July 2025. The draft guidance sets out how the Commissioner will administer extensions and full or partial exemptions.
Under PS LA 2025/D1, exemptions are only available in exceptional circumstances, such as where disclosure would compromise national security, breach Australian or foreign law, reveal commercially sensitive information or create a threshold mismatch due to exchange rate fluctuations.
Importantly, the regime also applies to fully Australian groups with no foreign operations if they meet the thresholds.
Further, the definition of a CbC reporting entity hinges on prior-year aggregated income, meaning that entities below the threshold in the current year but above it in the prior year may still be captured.
Exemption applications must be lodged before the end of the reporting period and supported by evidence (e.g. legal or financial documentation). If granted, exemptions may be rolled forward for up to two additional years if circumstances remain unchanged.
Given the high bar for exemption, groups should begin preparing documentation and consider registering with the ATO using the new form. While registration is not mandatory, it simplifies exemption and extension requests.
With the ATO’s draft guidance now released and consultation ongoing, affected groups should confirm if they are in scope, register early, and prepare the data required for reporting. While we await the final practice statement later this year, now is the time to assess potential exemption eligibility, gather supporting evidence, and ensure internal systems are ready to meet the first reporting deadline.
This article was authored by HLB Mann Judd Perth Tax Advisory Services Manager Brink van Wyk, who can be contacted at bvanwyk@hlbwa.com.au.
The article first appeared in the Spring 2025 issue of HLB Mann Judd Perth’s Client Alert.