Government introduces new multinational company tax legislation
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The news: The Australian government has introduced legislation in Parliament to improve tax transparency and ensure multinational companies pay a minimum tax.
The numbers: Under the proposed laws, there will be a 15% global minimum tax and domestic minimum tax for all multinational enterprise groups with an annual global revenue of at least €750 million ($1.2 billion), effective from 1 January 2024.
The context: The legislation was part of the Albanese government's budget announcement in May to implement the minimum taxes as part of a multilateral agreement supported by more than 140 nations.
Treasurer Jim Chalmers said the legislation reflected several rounds of consultations and engagement with stakeholders to ensure these minimum taxes operate as intended and minimise unnecessary compliance burdens.
What they said: “These measures bring us into line with many other nations, including the biggest economies in the world that are all cracking down on multinationals to ensure they are paying a fairer share of tax,” Chalmers said in a statement.
The source: Treasury
