On 17 Aug 2022, the Australian Taxation Office (ATO) announced a reduction in the corporate tax transparency income threshold for Australian-owned resident private companies from AUD 200 million to AUD 100 million from the 2023 income year.
Changes to the corporate tax transparency income threshold for Australian-owned resident private companies were introduced into Parliament as an amendment in July 2022. These changes became law by the Treasury Laws Amendment (2022 Measures No. 1) Act 2022 on 9 August 2022.
Each year, the ATO is required to publish corporate tax transparency reports which contain information reported by large corporations. The corporate tax transparency population refers to the entities which are included in the reports.
Prior to the amendment, the corporate tax transparency population included:
- Australian public and foreign-owned corporate tax entities with income of $100 million or more
- Australian-owned resident private companies with income of $200 million or more
- entities that have petroleum resource rent tax (PRRT) payable.
The amendment changes the $200 million income threshold for Australian-owned resident private companies to $100 million. From the 2023 income year onwards, the ATO will include in its corporate tax transparency reports, information reported to us by Australian-owned resident private companies with an income of $100 million or more.
