Australia: Further entity disclosures required under “Consolidated Entity Disclosure Statements”
New tax transparency measures enacted in 2024
New tax transparency measures enacted in April 2024 require all Australian public companies to prepare a “Consolidated Entity Disclosure Statement” (CEDS) as part of their annual financial statements. The CEDS must include detailed information about each entity in the consolidated financial statements, such as tax residency status, and directors must declare these disclosures as “true and correct.”
Further clarifications were made in December 2024 with the “Treasury Laws Amendment (Fairer for Families and Farmers and Other Measures) Act 2024,” addressing tax residency disclosures for entities with multiple jurisdictions and defining 'Australian resident' for partnerships and trusts. These clarifications apply to financial years starting on or after July 1, 2024. The requirements, effective for financial years ending June 30, 2024, and onwards, may require substantial judgment and the involvement of legal or tax specialists, especially for entities with multiple tax residencies.
Read an April 2025 report prepared by the KPMG member firm in Australia