Item 2 - Status of the business, consolidated subsidiary member indicator and Significant global entity

For further information, refer to Status of business on the ATO website.

Status of the business: Select the status code from the list available. If none of the selections apply, leave the selection blank. If more than one status is applicable, select the status with the lowest number.

‘Multiple business’ is specifically for businesses where there is income from more than one business activity.

Consolidation Status: If the trust was a subsidiary member of a consolidated group, at any time during the income year, select code 2 from the list.

Tax provides the Consolidation Eligibility (Subsidiary) worksheet (ces) to assist with completing label Z. This worksheet provides checks to determine the eligibility of the entity to be a subsidiary of a consolidated group. Refer to Consolidation eligibility (subsidiary) (ces). To open this worksheet, click Preparation > Schedule > Consolidation Eligibility (Subsidiary).

Label G1 - Significant global entity

The significant global entity (SGE) concept is used to give clarity to taxpayers about whether they are within the scope of the measures to which the definition applies.

The concept of SGE was introduced as part of the Tax Laws Amendment (Combating Multinational Tax Avoidance) Act 2015 legislation which contains a package of measures announced as part of the 2016-17 Budget. These measures focus on combating multinational tax avoidance.

An entity is a SGE if it is:

a global parent entity with an annual global income of A$1 billion or more, or
a member of a group of entities consolidated for accounting purposes and one of the other group members is a global parent entity with an annual global income of A$1 billion or more.

To assist in identifying SGEs, from the 2016-17 income year and going forward, entities will be required to self-assess themselves under the definition of a SGE and notify the tax office on their annual income tax return at 'Status of fund or trust' (item 8, N).

The SGE concept is part of the following measures:

The Multinational Anti-Avoidance Law (MAAL)
General Purpose Financial Statement (GPFS)
Country-by-Country (CbC) Reporting
Increased administrative penalties for SGEs.

CCH References

8-000 Overview of the group consolidation regime

22-630-Transfer pricing records, penalties and thresholds