New consolidated entity disclosure statement

As part of its broader reforms in relation to multinational tax, the Federal Government made legislative changes to the Corporations Act 2001 to require all public companies (listed and unlisted) reporting under Chapter 2M of the Act to include a new “consolidated entity disclosure statement” in financial reports for annual reporting periods beginning on or after 1 July 2023. Subsequently, legislative changes in 2024 amend the requirements applying for periods ending on or after 30 June 2025.

The statement includes details of all consolidated entities as at the end of the financial year, including names, ownership interests, place of incorporation and tax residency. However, where consolidated financial statements are not required to be prepared, the statement only requires a statement to that effect (i.e. no detail of subsidiaries would be provided).

The directors’ declaration that forms part of the financial report must include a statement about whether, in the directors’ opinion, the consolidated entity disclosure statement is true and correct. In addition, for listed public companies, the chief executive officer and chief financial officer must include a statement in their declaration to the directors that the consolidated entity disclosure statement is true and correct.

The statement is subject to audit as part of the audit of the financial report.

As we enter the second year of compliance, entities should respond to recent legislative changes clarifying the tax residency disclosures, and fine tune the information in the statement.

Note: This publication was originally issued in March 2024 and was updated in July 2024 and April 2025 for recent developments.

Download the publication to learn more.

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