PART 1
-
PRELIMINARY
SECTION 7
MEANING OF REPORTING ENTITY
7(1)
A constitutionally covered entity becomes a
reporting entity
at the start of a financial year for the entity if the entity is covered by subsection
(2)
.
7(2)
An entity is covered by this subsection if:
(a)
the entity:
(i)
carries on business in Australia; or
(ii)
is a company that is incorporated in Australia; or
(iii)
is a company that is not incorporated in Australia, but has either its central management and control in Australia, or its voting power controlled by shareholders who are residents of Australia; or
(iv)
is a corporate Commonwealth entity, or a Commonwealth company, within the meaning of the
Public Governance, Performance and Accountability Act 2013
; and
(b)
the entity
'
s consolidated revenue for the previous financial year is more than $100 million; and
(c)
the entity is not controlled by another entity that is a reporting entity; and
(d)
the entity is not registered under the
Australian Charities and Not-for-profits Commission Act 2012
.
7(3)
If the Regulator determines under subsection
10B(1)
that a constitutionally covered entity is a reporting entity, the entity becomes a
reporting entity
at the time the determination takes effect (unless the reporting entity is already a reporting entity at that time).
Note:
An entity that a determination under subsection
10B(1)
applies to is a
volunteering entity
(see the definition of
volunteering entity
in section
5
).
7(4)
If the Regulator determines under subsection
10E(1)
that a constitutionally covered entity is a subsidiary reporting entity, the entity becomes a
reporting entity
at the time the determination takes effect (unless the subsidiary reporting entity is already a reporting entity at that time).
Ceasing to be a
reporting entity
7(5)
A
reporting entity
continues to be a reporting entity until:
(a)
if the entity is a volunteering entity
-
the determination under subsection
10B(1)
that relates to the entity is revoked, or taken to be revoked, under subsection
10D(2)
,
(3)
or
(7)
; or
(b)
if the entity is a subsidiary reporting entity
-
the determination under subsection
10E(1)
that relates to the entity is revoked under section
10G
; or
(c)
a notice under subsection
10H(2)
(notice that entity has ceased to be a reporting entity) takes effect; or
(d)
the entity ceases to be a reporting entity under subsection
10K(2)
(Regulator may determine that entity is to cease to be a reporting entity).
History
S 7 substituted by No 65 of 2024, s 3 and Sch 1 item 24, effective 7 September 2024. For application and transitional provisions, see note under s
3
. S 7 formerly read:
SECTION 7 MEANING OF REPORTING ENTITY
Becoming a
reporting entity
7(1)
A constitutionally covered entity becomes a
reporting entity
at the start of an income year for the entity if the entity is covered by subsection (2).
History
S 7(1) substituted by No 8 of 2022, s 3 and Sch 8 item 24, applicable in relation to an election to become a reporting entity given by an entity on or after 23 February 2022. S 7(1) formerly read:
7(1)
A constitutionally covered entity becomes a
reporting entity
at the start of an income year (the
relevant income year
) for the entity, if:
(a)
the entity is covered by subsection (2); or
(b)
before the start of the relevant income year, the entity gives the Regulator notice in writing that the entity elects to become a reporting entity at the start of that income year.
Note:
A reporting entity that is a reporting entity only because of an election under paragraph (b) is a
volunteering entity
: see section 5.
7(1A)
If a constitutionally covered entity gives the Regulator notice in writing that the entity elects to become a reporting entity, the entity becomes a
reporting entity
when the notice is given.
Note:
A reporting entity that is a reporting entity only because of an election under subsection (1A) is a
volunteering entity
: see section 5.
History
S 7(1A) inserted by No 8 of 2022, s 3 and Sch 8 item 24, applicable in relation to an election to become a reporting entity given by an entity on or after 23 February 2022.
7(2)
An entity is covered by this subsection if:
(a)
the entity carries on an enterprise in Australia; and
(b)
any of the following apply:
(i)
the total income for the entity for the most recent income year for the entity was more than $100 million;
(ii)
if the entity is a controlling corporation
-
the combined total income for all members of the controlling corporation
'
s group for the most recent income year for the controlling corporation was more than $100 million;
(iii)
if the entity is a member of the group of a controlling corporation to which subparagraph (ii) applies
-
the total income for the entity for the most recent income year for the entity was at least $10 million; and
(c)
the entity is not registered under the
Australian Charities and Not-for-profits Commission Act 2012
.
Ceasing to be a
reporting entity
7(3)
A reporting entity continues to be a
reporting entity
until the Regulator determines, in writing, that the entity has ceased to be a reporting entity.
Note:
A decision not to determine that the reporting entity ceases to be a reporting entity is reviewable: see section 51.
7(4)
However, a reporting entity ceases to be a
reporting entity
immediately after the end of an income year (the
relevant income year
) for the entity if:
(a)
the entity is a member of a controlling corporation
'
s group; and
(b)
the entity is not a volunteering entity; and
(c)
the total income for the entity for each of the following was less than $10 million:
(i)
the relevant income year;
(ii)
the income year for the entity immediately preceding the relevant income year.
Application for determination
7(5)
A reporting entity may apply in writing for a determination under subsection (3).
7(6)
The application must include any information or documents prescribed by the rules.
7(7)
After considering the application, the Regulator must make the determination if:
(a)
the Regulator is satisfied:
(i)
that the total income for the entity for each of the 2 most recent income years for the entity was not more than $100 million; and
(ii)
if the entity is a controlling corporation or a member of a controlling corporation
'
s group
-
that the combined total income for all members of the controlling corporation
'
s group for each of the 2 most recent income years for the controlling corporation was not more than $100 million; or
(b)
the Regulator is satisfied that the entity is registered under the
Australian Charities and Not-for-profits Commission Act 2012
; or
(c)
the Regulator is satisfied that the entity is a volunteering entity.
When determination has effect
7(8)
The determination has effect immediately before the start of the income year for the entity in which it is made.
Notice of decision
7(9)
The Regulator must give the entity written notice of the Regulator
'
s decision on whether to make a determination under subsection (3).
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