New Beneficial Ownership Requirements (AU0027)

Summary

The Government will introduce new requirements for companies to record information about who ultimately owns, controls and receives benefits from a company operating in Australia.

Why this commitment is important

This commitment ensures that adequate, accurate and up-to-date information on beneficial ownership and control is available in a timely manner to relevant authorities and the public. This information will increase corporate accountability, and help to address and prevent tax evasion, money laundering, terrorism financing, and corruption. This commitment will advance the OGP values of transparency and accountability in business by: • improving the effectiveness of our legal, regulatory and institutional frameworks • preventing the misuse of corporate structures for illicit purposes such as corruption, tax evasion and money laundering, and • protecting the integrity of the financial system.

Related OGP challenge areas

• Access to information • Anti-corruption

How the impact of this commitment can be measured

The key measure of success for this commitment will be its effectiveness in contributing to the prevention of companies and legal arrangements being used for criminal purposes, tax evasion, or to avoid sanctions. This will be measured through reviewing the compliance of in-scope companies with new requirements and the accuracy of the information collected. Success will also be measured via Australia’s assessment under international commitments such as the Financial Action Task Force mutual evaluation process.

Other relevant information e.g. inquiries, research work being undertaken

The Government committed to implement a public beneficial ownership register for companies and other legal vehicles as part of its ‘Multinational Tax Integrity Package’. Treasury undertook a consultation process in late 2022 on a staged approach to the implementation of the Government’s commitment. OGP Global has further information on beneficial ownership in other jurisdictions in their Open Government Guide.

Milestones

4.1 Targeted consultation Undertake consultation session on data standards to underpin beneficial ownership disclosure requirements.

4.2 Revised materials and draft requirements Prepare material for second round of public consultation on the introduction of new requirements to record beneficial ownership information.

4.3 Second round public consultation Undertake second round public consultation process on beneficial ownership reforms (consultation responses will be published where permissible).

4.4 Revised materials and draft requirements Consider outcomes of second round public consultation and update future legislation, subject to the Government’s legislative priorities.

4.5 Options for beneficial ownership Consider options for development of Commonwealthadministered, publicly accessible register of beneficial ownership of companies in consultation with key Government and non-Government stakeholders.