Australia seeking to expand definition of "significant global entity"

On February 12, 2020, a bill to expand the definition of a significant global entity (SGE) was submitted before the Australian House of Representatives.
 
The Treasury Laws Amendment (2020 Measures No.1) Bill, 2020 extends the definition of a SGE to include members of large business groups headed by proprietary companies, trusts, partnerships, investment entities, and individuals.
 
Schedule 1 to the Bill broadens the definition of SGE in the tax law so that it:

• applies to groups of entities headed by an entity other than a listed company in the same way as it applies to groups headed by a listed company; and
• applies despite exceptions to when a group of entities must prepare consolidated accounts, including materiality rules, in the applicable accounting rules.

 
The amendments made by Schedule 1, if approved, would apply in relation to income years or periods commencing on or after July 1, 2019.
 
The move was first announced in the country's 2018-19 Budget to ensure that the multinational tax avoidance rules apply to all relevant entities. SGE is a concept to define a group of entities, interrelated by a control relationship that could enable non-arm’s length dealings and therefore be of special interest to tax authorities.
 
See Treasury Laws Amendment (2020 Measures No.1) Bill 2020