As the responsible agency for administering the Board of Taxation’s Voluntary Tax Transparency Code (TTC), the ATO uploaded information about the new Code (and its role in administering it).

[ATO website] [LTN 153, 10/8/16]

Background to TTC

By way of background the ATO notes that the Tax Transparency Code (TTC) is a set of principles and minimum standards to guide medium and large businesses on public disclosure of tax information. The Board of Taxation developed the TTC and recommended it to the Government, who accepted the recommendation in the 2016-17 Federal Budget. See ‘Tax Transparency‘ on the ATO’s site generally.

The TTC is voluntary to encourage greater (not minimum) transparency within the corporate sector, particularly by multinationals, and to enhance the community’s understanding of the corporate sector’s compliance with Australia’s tax laws.

Users of the disclosed information

Potential users of information disclosed under the TTC may include the general public and interested users in the community such as shareholders, analysts, social justice groups and the media. The information is hosted and can be accessed at

Disclosing the information

Disclosing companies put their disclosure on their own websites and then advise the ATO (at of the following:

  • name of the entity
  • whether it is a large or medium business (refer to the definition above)
  • if the origin of the ultimate parent company is Australia, foreign, Australia & foreign dual listed, or foreign dual listed
  • if the TTC contents satisfy the minimum standard under Part A and/or Part B
  • a current URL link to the published report.

Which companies are encouraged to disclose?

Companies (including entities treated as companies for Australian tax purposes) that are ‘medium’ or ‘large’ businesses are encouraged to adopt the TTC. This includes Australian-headquartered businesses and foreign multinationals that have operations in Australia. Other entities may voluntarily disclose if they wish (eg. superannuation funds, trusts and partnerships).

The minimum level of disclosure depends on the size of the company. For these purposes:

  • Medium businesses’ are businesses with aggregated TTC Australian turnover of at least A$100 million but less than A$500 million.
  • Large businesses’ are businesses with aggregated TTC Australian turnover of A$500 million or more.

Note: TTC Australian turnover is defined in section 6.1 of the Board of Taxation’s Final Report on a tax transparency code (February 2016).

What should be disclosed

The minimum information recommended for all of the above businesses is Part A in the following table and for   ‘large businesses’ there is additional information suggested in Part B.

TTC content
TTC disclosure Who Minimum standard of information
Part A ‘Large’ and ‘medium’ businesses A reconciliation of accounting profit to tax expense and to income tax paid or income tax payable
Identification of material temporary and non-temporary differences
Accounting effective company tax rates for Australian and global operations (pursuant to AASB guidance)
Part B ‘Large’ businesses Approach to tax strategy and governance
Tax contribution summary for corporate taxes paid
Information about international related party dealings

From what year can disclosure be made?

The Board of Taxation recommended the TTC be adopted for financial years ending after the Government’s announced release of the Board’s final report on 3 May 2016. This means companies with a 30 June year end are encouraged to adopt the TTC for the year ended 30 June 2016. There is no prescribed timing for the release of annual TTC reports.