On 20 July 2018, the Australian Treasury released Exposure Draft legislation to extend the definition of a significant global entity (SGE). As a result, the extended definition of an SGE may include members of large private groups headed by unlisted companies, trusts (including discretionary trusts), partnerships or other investment vehicles. This will have wide ranging implications for affected large private groups which were previously outside the scope of some anti-avoidance provisions, increased administrative penalties and the requirement to lodge general purpose financial statements.
The change is proposed to apply for income years starting on or after 1 July 2018.
Please click here to read our article which discusses the proposed changes to the definition and the potential impact for trusts, as well as on reporting and public disclosure.