All five OECD–recognized transfer pricing methods are accepted methods. There is no hierarchy of methods.
Provided that you take into account that there are benefits and disadvantages to using method 815-B, that [Name of business entity]
function, use the assets available, and are actually taking the associated risks, the [Name of business entity] needs to use the same level
of protection of assets during [state time period]. Comparability is determined by the five factors of comparability: functional analysis,
characteristics of the property or services, contractual terms, economic circumstances of the entities, and their business strategies. The
TNMM method is not exclusive. In practice, the tax office and most Australian taxpayers use the TNMM method.
In the area of transfer pricing, the approach to be taken is one that best achieves consistency with the OECD guidelines. The legislation that applies for transfer pricing in Australia doesn’t specify the years for selecting comparable, foreign comparable aren’t excluded, and the tested party need not be an Australian entity. The Australian Tax Office doesn’t express a preference for the databases (whether company, debt instrument, or commodity price).