Transfer Pricing

Australia’s transfer pricing rules seek to avoid the underpayment of tax in Australia. The rules aim to make sure that businesses price their related-party international dealings in line with what is expected from independent parties in the same situation.

Pricing for international dealings between related parties should reflect the right return for:

• the activities carried out in Australia
• the Australian assets used (whether sold, lent or licensed)
• the risks assumed in carrying out these activities.