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Small business Machinery of Government (MoG) changes 2021
This content is under review. The small business function transferred to Treasury as a result of the Administrative Arrangements Order made on 15 April 2021 with effect from 15 April 2021.

A group structure is a collection of member entities and the controlling corporation.

A member entity is a subsidiary of a controlling corporation’s group. This is unless it is also a subsidiary of another body corporate. This is because the body corporate meets the requirement in subparagraph 46(a)(i) or (ii) of the Corporations Act 2001 in relation to the subsidiary and the other body corporate is not a member of the group.

The scheme’s reporting requirements capture all members of a group:

  • with at least $10 million in total income
  • where the group’s combined total income is more than $100 million


Corporation X is a controlling corporation. Its total income is $80 million. It has three members. Subsidiary A’s total income is $50 million. Subsidiary B’s total income is $40 million. Subsidiary C’s total income is $5 million. The total of the group’s combined income is $175 million.

Controlling Corporation X, Subsidiary A, B and C are all CCEs and carry on an enterprise in Australia. Each of Controlling Corporation X, Subsidiary A and B is a reporting entity. This is because the combined total income of the group is $175 million. Subsidiary A and B also have total incomes above $10 million. They will all have to submit their own Payment times report.

Subsidiary C has a total income of less than $10 million. It is therefore not a reporting entity and does not need to submit a Payment times report.

Group level reporting

The scheme requires businesses to report at an individual entity level rather than at a group level. This is so that small businesses can know the payment performance of individual businesses in the group.

One reporting entity within a controlling corporation’s group may submit compliant reports on behalf of all member entities. In other words, each entity needs to complete a report but can submit them together in one process.

Controlling corporation

A controlling corporation is a body corporate that is:

  • incorporated in Australia  
  • not a subsidiary of another body corporate that is incorporated in Australia

A controlling corporation is determined with reference to the concepts in the Corporations Act 2001.

A controlling corporation must report if it:

  • is a CCE
  • carries on an enterprise in Australia
  • has a combined total income for all members of the group greater than $100 million

This is irrespective of its own individual total income.