The Albanese Government has opened consultations on international corporate tax reforms as part of its commitment to ensuring multinationals pay their fair share of tax.
During the election campaign, we announced our support for the OECD/G20 two-pillar solution on reforms that included a global minimum corporate tax rate of 15 per cent.
Australia was one of 130 countries that endorsed the solution to address tax challenges arising from digitalisation and globalisation.
This historic global effort will help ensure that multinationals pay their fair share of tax, help stop the ‘race to the bottom’ on corporate tax rates, and support the domestic and global economy.
As a next step, we are seeking views on how the proposed global corporate tax solution would operate in Australia, and how Australian stakeholders view the benefits, challenges and impacts.
Submissions will help inform how to implement the reforms domestically, and help with ongoing negotiations on the design elements of the two-pillar solution.
Australia’s ongoing engagement in the OECD-led multilateral process complements our multinational tax integrity package that will address tax loopholes exploited by multinational companies.
We welcome contributions and input from the community. Submissions close on 1 November 2022.
To access the consultation paper or lodge a submission visit the Treasury website.