The Albanese Government is taking the next steps to ensure multinational companies pay their fair share of tax.
Today we are releasing exposure draft legislation to implement a global and domestic minimum corporate tax rate of 15 per cent.
Multinational companies making a profit in Australia should pay tax on those profits in Australia.
An international tax system where big multinationals pay their fair share is better for small businesses, better for taxpayers and better for the economy.
The draft legislation being released today is part of a global effort to prevent a race to the bottom on corporate income tax.
In the 2023-24 Budget, the Government announced it would introduce a 15 per cent global minimum tax and domestic minimum tax for multinational companies with annual global revenue of at least EUR 750 million (approximately A$1.2 billion). The core rules commence from 1 January 2024.
Minimum taxes are a key part of a coordinated global approach by the OECD to put a floor on tax competition and establish a fairer domestic and international tax system.
This legislation ensures Australia will be among the lead jurisdictions implementing these global and domestic minimum taxes as a key part of the OECD/G20 Two‑Pillar Solution that was agreed in 2021.
The exposure draft legislation (primary and subordinate) and discussion paper are on Treasury’s website.
It builds on legislation currently before the Parliament to stop multinationals claiming excessive debt deductions to wipe out or reduce tax in Australia and to increase transparency. The Government aims to pass that legislation in the current sitting period.
