From the financial year commencing after 1 January 2016, Australia has adopted the Organisation for Economic Co-operation and Development (OECD) transfer pricing documentation and reporting standards.
This means multinationals need to review their current transfer pricing arrangements in Australia and prepare the information required to ensure compliance with the new requirements.
Under the new measures, multinationals operating in Australia (or consolidated groups with a global parent entity) which have annual global gross income of $1bn or over, are required to provide:
Any multinational groups with business operations in Australia must review their annual global gross income to ascertain whether this is in excess of $1bn. If they exceed this annual global gross income criteria, they will be required to submit the necessary reports.