Multinationals required to publish tax and operational data from July 2025
New laws that came into effect on 1 July 2025 are set to increase transparency and make it harder for large Australian and foreign companies to avoid paying their fair share of tax. The reforms mandate that multinationals with global revenues over $1 billion and Australian turnover exceeding $10 million must publicly disclose key financial and tax data, including detailed country-by-country reports.
These public disclosures, known as Country-by-Country Reporting (CbCR), will provide insight into where multinationals operate, the nature of their activities, their employee numbers, revenues, assets and the amount of tax paid in each jurisdiction. This level of detail is intended to expose profit shifting to low- or no-tax countries and better align reported profits with actual economic activity.
The introduction of these rules positions Australia alongside the European Union, which enacted similar transparency measures last year. Previously, CbCRs were submitted confidentially to the Australian Tax Office (ATO) since 2016, but were not made publicly available.
The reforms are part of the Federal Government’s multinational tax integrity package, aimed at delivering a fairer and more sustainable tax system. Under the new regime, companies such as BHP, Apple, Microsoft, Rio Tinto and Meta will be required to publish tax-related data that was once hidden behind high-level financial statements.
The enhanced disclosures will also provide investors with better information to assess corporate tax and reputational risks.
While increased transparency alone may not eliminate tax avoidance, it introduces a new level of scrutiny that could deter aggressive tax planning and potentially boost Australia’s corporate tax revenue.
Although the law does not change the amount of tax a company is legally obliged to pay, it brings greater accountability to how multinational profits are reported and where taxes are paid. Importantly, the regime reflects growing global concern about corporate tax behaviour and attempts to ensure that economic presence aligns more closely with tax obligations.
To learn more about public Country-by-Country Reporting and what it means for multinational tax transparency visit: ato.gov.au/public-country-by-country-reporting or contact the team at Alliott NZ in Auckland.
This article is based on commentary by Professor Kerrie Sadiq of QUT Business School and Rodney Brown of UNSW Sydney, highlighting the implications of Australia’s latest move toward greater tax transparency. Read more »