The Australian Taxation Office (ATO) has publishedĀ Local file instructions 2018Ā and Local file/master file 2018Ā to provide guidance for taxpayers to comply.

The local file must be electronically lodged in the approved form (an XML file generated in accordance with an ATO developed XML schema). The local file is part of a combined form, which also contains the master file. The local file may be lodged separately or together with the master file.

The information requirements (high level design) and associated specifications (detailed design) for the local file are contained in theĀ Local file/master file 2018. Reference to specific form elements is made via element IDs in the form of ‘LCMSFXXX’.

The local file collects information and relevant documentation forĀ international related party dealingsĀ (IRPDs). The local file is comprised of three parts:

  1. Short form
  2. PartĀ A
  3. Part B.

A key design feature of the local file is the requirement to show values inĀ PartĀ AĀ and provide agreements inĀ PartĀ BĀ for individual IRP transactions, unless the transaction is covered by:

  • one of the eight categories on theĀ exclusions list
  • an agreement which is in aĀ Relevant Agreement SeriesĀ (RAS).