The Albanese Government has passed legislation through the Senate to help ensure multinationals pay their fair share of tax in Australia.
This delivers on our election commitment to improve tax transparency and integrity.
To pay for the things that matter most to Australians like healthcare, education and defence, it’s important that multinationals that operate in Australia pay a reasonable amount of tax and that’s what our legislation helps achieve.
The new laws will set a 15 per cent global minimum tax and domestic minimum tax for multinational enterprise groups with an annual global revenue of at least EUR 750 million (approximately A$1.2 billion) effective 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 will allow Australia to apply a top‑up tax on a multinational operating in Australia, if the multinational group pays less than a 15 per cent tax rate wherever it operates globally.
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.
