6 December 2024

Proposals to improve transparency of the true owners of unlisted companies

The Albanese Government has released proposals for the first phase of our commitment to improve information on the beneficial ownership of unlisted companies.

The reforms will ensure, for the first time, that unlisted companies maintain an accurate, up‑to‑date register of their real owners.

Currently, under the Corporations Act 2001, companies must maintain registers of their members. However, beneficial owners – individuals who ultimately control a company through an entity such as a trust – are not always the legal owners of a company, and so may not be included in the company’s membership register.

The proposals build on the approach outlined in the Government’s initial public consultation, and are informed by feedback received during the consultation as well as the findings of a privacy impact assessment.

They will form the basis of the next stage of the reform, which will involve a public consultation on exposure draft amendments to the Corporations Act.

Earlier this month, the Albanese Government announced the beginning of consultation on draft amendments to the Corporations Act 2021 related to the beneficial ownership of listed companies.

By making these amendments and developing an open register of ownership, the Government will improve awareness of who ultimately owns, controls or receives profits from a company or legal vehicle operating in Australia.

No Australian Government has done more than the Albanese Government to improve corporate tax integrity and tax transparency.

This measure continues our reforms to improve transparency and ensure that companies are appropriately accountable to the public.