An entity will cease to be a reporting entity if the Regulator is satisfied about any of the following:
- their total annual income is below $100 million in each of the two most recent income years
- they are a controlling corporation or member of a controlling corporation’s group, where the combined total annual income of the group is below $100 million in each of the two most recent income years
- they are a volunteer that no longer wants to report
Reporting entities who want to cease reporting must apply. They can do this via the reporting portal, to the Regulator.
The application must specify the reason and date on which the entity will cease reporting. The reporting entity must also include supporting documentation.
Supporting documentation could include:
- the latest lodged tax returns
- advice from an independent and suitably qualified auditor about the entity’s total income
- evidence of a change in business structure if the entity has ceased to be a CCE
The Regulator will assess the application and decide whether a reporting entity can cease reporting.
The Regulator may reject the application. If they do, the entity can request a review through an internal review process. If the entity is unsatisfied with this review, they can apply for a review to the Administrative Appeals Tribunal.
In some cases an entity may cease reporting without applying to the Regulator. This is possible where:
- it is a member of controlling corporation’s group, and
- for each of the last two years, the entity had a total income of less than $10 million
This is to reduce the regulatory burden of small entities seeking decisions from the Regulator on their reporting status. However, the entity must notify that they are no longer a reporting entity in their final Payment times report.