Canada and Australia will begin negotiations in June 2026 to modernise their 1980 income tax treaty, with Canadian officials inviting public feedback on challenges faced under the Australian tax system before talks commence.
Canada’s Department of Finance announced on 12 May 2026 that discussions will begin next month to modernise the income tax agreement between Canada and Australia. The current treaty, originally established in 1980, has been modified twice through a 2002 protocol and the BEPS Multilateral Instrument.
Canadian authorities are actively seeking feedback from stakeholders before negotiations commence. The government has expressed particular interest in hearing from Canadian citizens and businesses about challenges they face when dealing with Australian tax regulations. This consultation period allows interested parties to highlight specific issues that could be addressed during the upcoming talks.
While officials have not specified whether they will pursue a comprehensive replacement treaty or simply add another amendment protocol, indications suggest a completely new agreement is the more probable outcome.
Anyone wishing to contribute comments regarding the negotiations can submit their perspectives to the International Tax Division at the Department of Finance, located at 90 Elgin Street, 11th Floor, Ottawa, ON K1A 0G5, or via email at taxtreaties-conventionsfiscales@canada.ca.
