2023 VOLUNTARY TAX
TRANSPARENCY REPORT
Across the countries in which weoperate, we contribute directly
to the economy by paying taxes,
money which is then used bygovernments to provide publicservices and amenities for thebenefit of the wider community.
ANZ’s tax disclosures meet the requirementsof the Australian Board of Tax, Voluntary Tax
Transparency Code (TTC). We have prepared
our tax transparency disclosures in this reportin conformance with the TTC.
In 2023, ANZ global net taxes borne amounted
to $3,515 million (2022: $3,463 million). ANZ also
directly remitted an additional $4,209 million(2022: $3,846 million) in taxes which werecollected (primarily relating to GST/VAT andemployee remuneration) on behalf of and paid
to the governments of the countries in which
we operate.

Total taxes borne by
ANZ Group (A$ million)

2023

2022

Income Tax Expense consisting of:Australia

1,642

1,835

New Zealand

767

820

APEA

540

276

2,949

2,931

Unrecovered GST/VAT

310

310

Employee related taxes

218

191

38

31

3,515

3,463

Other taxes/duties
Total tax payments borne11. 2022 includes discontinued operations. No discontinuedoperations in 2023.

ANZ operates in 29 markets globally throughbranches and subsidiaries. We have sevensubsidiaries in countries which the Australian
Taxation Office (ATO) classifies as ‘specified
countries’ (i.e. tax havens). These subsidiaries
operate in countries in which ANZ holds a banking
licence and are used as part of banking activities.
They have been fully disclosed to the ATO.
The Major Bank Levy Act 2017 (the levy) wasintroduced in 2017, effective from 1 July 2017.
We have determined that the levy represents
a finance cost for the bank and is included
as a component of net interest income. This ispresented within interest expense in the Income
Statement, available in the 2023 Annual Reportat anz.com/annualreport and amounts to$353 million (2022: $340 million).

Our tax strategy andgovernance framework
ANZ operates under a global tax governancepolicy which is overseen by the Board Audit
Committee and states that our tax affairs aremanaged in accordance with the Group’s low-risk
appetite and a philosophy based on an open andtransparent relationship with revenue authorities.
The policy covers all taxes, associated credits andtax attributes. Under the policy, the Board Audit
Committee ensures that there is a framework inplace to keep them informed about tax riskmatters, the effectiveness of the tax control
framework and whether tax paid aligns withbusiness results.
As part of our tax governance framework, we haveimplemented compliance policies, proceduresand programs to ensure continued adherencewith the tax laws in all the countries in which
we operate. Tax compliance is a fundamental
part of business practices of ANZ and ourcontrolled entities. ANZ undertakes periodic
internal tax control testing and reports this to
the Board Audit Committee.
ANZ’s tax culture and business practices areconsistent with ANZ’s values and aspirations.
ANZ does not enter into any arrangements thatare designed to avoid or reduce the tax that weor our customers and partners owe.
The tax governance and tax transfer pricing
governance policies are publicly available atanz.com/corporategovernance.

In our two largest markets we have been party
to an Annual Compliance Arrangement (ACA)and Cooperative Compliance Arrangement (CCA)
with the Australian and New Zealand Federal Tax
Regulators respectively for a number of years.
Where possible, ANZ has sought to agree Advanced
Pricing Arrangements (APAs) regarding the tax
treatment of our International Related Party
Dealings. These arrangements continue to beeffective in demonstrating ANZ’s focus on corporate
governance standards, tax risk management
processes and comprehensive disclosure.

Australian tax transparency
In line with Australian legislation requiring theATO to publish specific income tax return dataof corporate tax entities that report a totalincome of $100 million or more, the following
table provides further transparency on our2022 Australian income tax return data.
30 September 2022

26,635

Total Income3Taxable Income
Tax payable5

Total2(A$ million)

4

5,346
1,569

2. As expected to be reported by the ATO when published.
3. Total Australian income before all expenses (e.g. Interest expense,employee costs, depreciation etc). This amount includes exempt
income, other non-assessable income and foreign source income.
4. Taxable income represents assessable income derived from all
sources less allowable deductions incurred in gaining that income.
5. The 2022 tax liability includes tax offset reductions of $35 million
relating to foreign income tax offsets.

International related party dealings

Voluntary tax transparency

ANZ provides a broad range of banking and financial products andservices to individual and business customers in multiple geographicmarkets. In the course of serving our customers across the markets
in which we operate, transactions take place which give rise toInternational Related Party Dealings (IRPDs) with offshore branches
and subsidiaries.
The main IRPDs that impact ANZ
are set out below.
Funding – To support normal business
operations, namely to facilitate customer
lending and to meet regulatory capitalrequirements, ANZ related parties
may undertake cross-border shortand long-term funding transactions.
Group Capability Centre support –To obtain cost, risk management andenhanced customer service advantages,
ANZ locates Group Capability Centres inIndia, the Philippines, China and Fiji toprovide support services to other ANZ
related parties.
Support and Technology Services –Business support, operations and technology
functions are centralised principally inAustralia, and provide support to multiple
ANZ related parties.
Derivatives and related activities – ANZ’s
Markets business operates in a truly global
derivative market, and consequently, ANZ
related parties will engage in derivative saleand trading arrangements with other ANZ
related parties.

anz.com

Consistent with the principles of the ANZ Tax
Transfer Pricing Governance Policy, ANZ’s IRPDs
are conducted in a manner consistent with
Australian taxation law and international taxation
norms, including applying the ‘arm’s lengthprinciple’.6 ANZ does not use transfer pricing
as a means to shift income, costs or profits
to/from tax-preferred countries.
The main counterparties ANZ Australia deals
with are branches and subsidiaries located in
New Zealand, Singapore, the United Kingdom,Hong Kong, the United States and India. Eachcounterparty has its own significant local country
business presence, a large workforce of employees
and economic substance.
ANZ maintains contemporaneous documentation
supporting the pricing of international related
party dealings, which complies with local country
documentation requirements. International
requirements for transfer pricing reporting underCountry by Country Reporting legislation arealso followed, supporting the global exchange ofinformation between Australia and other countries.

2023 AU$ million
Australia

NewZealand

APEA

Total

Profit before income tax (PBT)7

5,201

2,761

2,113 10,075

Prima Facie income tax expense based on local statutory tax rate

1,560

773

525

2,858

Share of associates’ profit/(loss)(66)

00(66)

Interest on convertible instruments

92

0092

Other22(4)

20

38

1,608

769

545

2,922

Collectively assessed allowances for expected credit losses

2432(8)48

Individually assessed allowances for expected credit losses

(36)

(4)

(7)

(47)

Other provisions

(21)

(10)

0(31)

Software75(32)

043

Other(25)

(2)

1(26)

17(16)

(14)

(13)

(12)

00(12)

1,613

753

531

2,897

1,608

769

545

2,922

Prior year adjustments to amounts provided

(4)

040

Other

Permanent differences

Income tax expense relating to current year liability
Temporary differences (movement)

Total temporary differences (movement)
Other adjustments impacting current tax payable

8Current year income tax payable
Total income tax expense (ITE)Income tax expense relating to current year liability

38(2)

(9)

277

Total income tax expense

1,642767

540

2,949

Effective Tax Rate (ITE/PBT)

31.6%

27.8% 25.6% 29.3%

Statutory Tax Rate30%

28% various

6. All IRPDs must be priced as if the related parties were acting at arm’s length. In essence the pricing determined should be equivalent to thatfound in a normal commercial pricing arrangement between non-associated parties. 7. Consistent with the Income Statement of 2023 AnnualReport. Geography split is based on a legal view. 8. Represents estimated tax offsets.

ANZ Group Holdings Limited (ANZ) ABN 16 659 510 791