The Albanese Government has released a discussion paper for public consultation on our election commitment to ensure that multinationals pay their fair share.
Multinational corporations making a profit in Australia should pay their fair share of tax in Australia.
Our multinational tax package will close tax loopholes exploited by multinationals and improve tax transparency.
This will benefit Australians by funding vital services like Medicare, aged care and childcare; helping to service the trillion dollars of debt racked up by the former government; and levelling the playing field for Australian businesses.
The discussion paper addresses our commitments to strengthen the interest limitation rules for multinationals; deny deductions for payments relating to intangibles and royalties that lead to insufficient tax being paid; and enhance multinationals’ disclosure of tax information, to ensure the public is better informed of multinationals’ tax arrangements.
These commitments complement the Government’s ongoing engagement in the OECD’s Two‑Pillar Global Tax Agreement, which includes a global minimum tax.
Unlike our predecessors, we won’t let multinationals off the hook when it comes to their tax obligations and ensuring they pay their fair share of tax.
These commitments are measured and targeted, without imposing unnecessary handbrakes on genuine business activity.
We welcome contributions and input from the community on these commitments.
Submissions close on 2 September 2022. To access the discussion papers or lodge a submission, visit the Treasury website.