Linkedin
Facebook
Email
more
PS LA 2025/2 OVERVIEW
Issued by the ATO on 5 December 2025, PS LA 2025/2 sets out the Commissioner’s administrative approach to exercising his discretion to grant exemptions from Australia’s Public Country-by-Country Reporting (“PCbCR”) obligations.
PS LA 2025/2 steps through:
- Background to the PCbCR regime and entities within scope;
- Exemption types and considerations relevant to the exercise of discretion; and
- The exemption application process and evidentiary requirements.
Australian PCbCR obligations apply for reporting periods starting on or after 1 July 2024, are due for lodgement 12 months after the end of the reporting period, and require publication of selected tax and operational information for Australia, specified countries, and aggregated global operations. Further details regarding the Australian PCbCR rules and entities within scope can be found in our Tax Insight here.
The PCbCR regime aims to enhance tax transparency by providing the public with a clearer picture of an entity’s economic presence and tax contribution across jurisdictions. It builds on global standards such as Global Reporting Initiative (“GRI”) 207, making Australia’s framework one of the most comprehensive worldwide.
Exemption framework
Subsections 3DB(5) and (6) of the Taxation Administration Act 1953 respectively confer on the Commissioner discretions to provide taxpayers full or partial exemptions from Australian PCbCR obligations, on a per-reporting period basis. A full exemption releases an entity from all publishing obligations for a period, while a partial exemption applies to specific data fields or jurisdictions. These exemptions are designed to balance transparency with legitimate confidentiality concerns.
Exemptions are intended for exceptional circumstances only. Factors considered by the Commissioner include:
- Impacts on national security;
- Breaches of Australian or foreign law; and
- Disclosure of commercially sensitive information that could cause substantial harm.
Currency fluctuations or ownership changes that bring an entity into the scope of the Australian PCbCR regime, may also be relevant. If sensitive information can be effectively obscured through aggregation or is already public, exemptions are less likely to be granted.
Application process and evidentiary requirements
Entities seeking an exemption must apply in writing, specifying whether they seek a full or partial exemption and provide supporting evidence. A non-exhaustive list of relevant evidentiary support is included at Appendix 2 of PS LA 2025/2 which contains various types of financial and legal documentation examples such as financial reports and legal agreements. Exemptions apply per reporting period, with streamlined requests possible for up to two subsequent periods if circumstances remain unchanged.
Key takeaways
It can be expected that the Commissioner’s discretion will be granted only in exceptional cases. Even if your circumstances appear similar to published examples, there is no guarantee of an exemption. Businesses should not rely on exemptions as part of their compliance strategy.
Entities should align internally now to:
- Identify all data required for the PCbCR (for more information regarding the data requirements, please see our Tax Insight here);
- Identify all key stakeholders that require input into publicly disclosed information (e.g., Finance, Legal, Investor Relations, etc.); and
- Ensure systems and processes can produce accurate, complete data for publication on time.
FOR MORE INFORMATION
If you would like to learn more about the topics discussed in this article, please contact your local RSM office.
