EY helps clients create long-term value for all stakeholders. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate.
At EY, our purpose is building a better working world. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets.
Drive growth and confidence in your global operations with EY Australia’s transfer pricing expertise. We don’t just manage compliance—we help you design strategies that unlock value. From policy design and implementation to transaction planning, risk management, and dispute prevention and resolution, our team ensures your cross-border dealings are efficient, compliant, and future-ready.
Our multidisciplinary specialists combine deep sector knowledge with practical experience, supporting Australia’s largest multinationals and ambitious start-ups alike. Whether you’re building a commercially efficient operating model or navigating Australia’s complex transfer pricing regime, we deliver pragmatic solutions that work.
What sets us apart? Global reach with local insight. Leveraging EY’s worldwide network, we provide seamless, fit-for-purpose solutions across geographies—bringing the best of EY to every client, every time.
Transfer pricing rules and regulations around the world continue to grow in number and complexity. Practitioners need to have current knowledge of a complex web of country tax laws, regulations, rulings, methods and requirements.
The Australian transfer pricing policy and compliance landscape is dynamic and complex. Our ‘transfer pricing soundbite’ series deliver bite-sized 60 second summaries that outline the things that matter most.
PCbCR
Thin Capitalisation
Embedded royalties
This EY transfer pricing soundbite is focused on Australia’s public country by country reporting regime. First disclosures will be due in 2026.
The Australian transfer pricing policy and compliance landscape is dynamic and complex. Our ‘transfer pricing soundbite’ series deliver bite-sized 60 second summaries that cut through the noise and outline the things that matter most.
In this EY transfer pricing soundbite, we note the ATO’s focus on embedded royalties is unlikely to diminish following the High Court’s decision in the PepsiCo case.
What Oceania transfer pricing can do for you
We apply deep expertise, cutting edge technology and industry-leading tools to optimise your transfer pricing and simplify your compliance obligations, which draws on our dynamic and experienced team across Oceania.
TP doc solutions
CbC reporting
Transfer pricing advisory
Operational transfer pricing
Tax authority engagement strategy
Transfer pricing documentation solutions
Our teams of experienced professionals can help you interpret the intent of tax authorities wherever you operate or intend to operate. Learn more.
EY has also developed a separate CbC reporting tool “CbCR Web™” that helps you generate CbC reporting data, as required under BEPS Action 13 and the specific Australian obligations. Given our deep Australian TP expertise and knowledge of tax authority expectations, we work with you to ensure your disclosures are appropriate with the right levels of support in place, managing TP risks in real time.
Transfer pricing advisory
Our transfer pricing advisory offering transforms TP from a year‑end obligation into a real‑time strategic capability. Recognising that businesses are constantly evolving, we partner with inbound and outbound clients to design defensible, commercially aligned and future proof pricing policies that reflect how business truly operates.
We work with clients to refresh their transfer pricing policies in a way that better reflects an evolving business reality. This includes embedding such policies with operational ‘guardrails’ for all group entities; and modifying systems to ensure alignment between commercial practice, accounting and tax. We work with you to develop, embed and implement TP policies that align with your business objectives by integrating models into ERP and invoicing systems, standardising contracts and workflows, and ensuring the organisation speaks a consistent TP language. Because great TP doesn’t stop at implementation, we also build monitoring frameworks that test outcomes through the year, apply analytics to spot variances early, and enable course‑corrections to be included in your supporting documentation before audit exposure arises.
Whether shaping TP policy and operationalising it globally, supporting a business restructure or navigating APAs, MAPs, or audits, our team brings the innovation, credibility, and commercial insight needed to stay ahead in a rapidly changing global tax environment. Strong system integration ensures alignment between your ERP, TP data, and reporting needs, supporting an ‘audit‑ready’ position for any review.
Operational transfer pricing
Operationalising transfer pricing models remains challenging – and its under more scrutiny than ever. EY has developed a structured and scalable framework that sharpens implementation and delivers results. Operational transfer pricing is more than just automation - strong operational transfer pricing foundations are essential in delivering accurate transfer pricing policies within a robust governance environment, with real time intercompany diagnostics providing a health check of a company's transfer pricing systems and processes to minimize leakages and maximise efficiencies.
Tax authority engagement strategy
Our team stands out in the market for its unmatched and differentiating expertise in dealing with tax regulators. Members of our team have deep experience at senior levels of the ATO, including in the role of competent authority and can bring significant insight and perspective on managing controversy as part of an overall strategy of engagement with the regulator. We are known for our strong regulator relationships, and our reputation as a trusted adviser where we navigate ATO processes to mitigate and resolve transfer pricing disputes. In this regard, we have significant experience in successfully negotiating Advance Pricing Agreements and resolving TP disputes, including through Mutual Agreement Procedures.
Let's talk
Contact your Oceania transfer pricing specialist for a discussion.
The Australian Taxation Office (ATO) has released draft instructions for consultation, for completing the public country-by-country reporting (PCbCR) annual report form (Public CBC report).
On 13 August 2025, the full bench of the High Court of Australia (High
Court) delivered its long anticipated judgement in Commissioner of Taxation v PepsiCo, Inc [2025] HCA 30. The High Court, by majority, found that a royalty did not exist where the agreement did not expressly provide for a royalty. Furthermore, the majority also found that the diverted profits tax (DPT) did not apply as there was no tax benefit.
The Australian Taxation Office (ATO) has issued new materials in relation to Australia’s now operative public country-by-country reporting (PCbCR) regime:
The draft PCG outlines the ATO’s compliance approach with a series of low and
high-risk factors and a four colour coded risk assessment framework (white,
yellow, green, and red zones) with varying levels of scrutiny for when they are
likely to apply their resources to determine whether or not they will have cause
to devote compliance resources to further examine restructures by taxpayers.
The ATO has issued its updated draft software royalty withholding tax ruling, Draft Taxation Ruling (TR) 2024/D1, Income Tax: royalties – character of payments in respect of software and IP rights (‘TR 2024/D1’) for consultation (link). This draft TR is an update following the ATO’s publishing of draft TR 2021/D4 in 2021.
On 17 January 2024, the Australian Taxation Office (ATO) released the final guidance on intangible arrangements with international related parties in the Practical Compliance Guideline (PCG) 2024/1, which supersedes the drafts previously released (PCG 2021/D4 and PCG 2023/D2).