The Australian Taxation Office (ATO) has published Local file instructions 2018 and Local file/master file 2018 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 the 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 for international related party dealings (IRPDs). The local file is comprised of three parts:

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

A key design feature of the local file is the requirement to show values in Part A and provide agreements in Part B for individual IRP transactions, unless the transaction is covered by:

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