Australia: Transfer Pricing

'Hilton International Australia Pty Ltd v Commissioner of Taxation (No 2) [2026] FCA 1325' examines Part IVA's treatment of alternative postulates and the critical role of evidence in tax benefit analysis. The Federal Court's decision establishes that multiple reasonable alternatives may exist, and that a Part IVA scheme cannot serve as a valid counterfactual to another Part IVA scheme.

The most significant shift in Australian tax enforcement is not tax rates, but the convergence of transparency, enforcement and foreign investment scrutiny – elevating tax into a first‑order governance and reputational risk for boards.

US technology, pharma, and life science companies establishing Australian subsidiaries to access R&D tax incentives face complex international tax challenges. When intercompany agreements are drafted without proper coordination between US transfer pricing rules and Australian R&D Tax Incentive requirements, companies risk significant IRS exposure including platform contribution payment obligations, cost reallocations, and penalties that can exceed the intended tax benefits.

Each level of government in Australia imposes its own taxes – Federal, State and Territory, and Local Governments.

The PCG will have effect from July 1, 2019.

The Federal Court of Australia ("The Court") released its decision in the case of Glencore Investment Pty Ltd v. the Commissioner of Taxation on September 3, 2019.

We look at the tax measures that are on the horizon and consider how these new rules will impact the shipping industry.

This includes business tax and international tax measures and some of the personal tax measures in the Federal Budget.

Given the media attention on measures to combat multinational tax avoidance, several integrity measures were announced.