Australia's Treasury is consulting on draft rules that would make minor amendments to the country's multinational minimum tax framework, ensuring its domestic legislation remains consistent with the latest OECD guidance and retains its qualified status under the global GloBE rules.
Australia’s Treasury has initiated a public consultation on proposed amendments to the Taxation (Multinational—Global and Domestic Minimum Tax) Rules 2024 from 16 February – 13 March 2026.
The draft amending rules, titled the Taxation (Multinational—Global and Domestic Minimum Tax) Amendment (2026 Measures No. 1) Rules 2026, seek to update specific provisions in line with the most recent administrative guidance issued by the OECD.
The amendments propose:
- Clarification of the operation of Australia’s domestic minimum tax in relation to stateless entities with an Australian nexus;
- refine the interaction between Australia’s domestic minimum tax and existing consolidation rules;
- ensure covered taxes are allocated consistent with the allocation of GloBE income for certain entities;
- ensure that Australia’s domestic minimum tax will function properly;
- add a foreign currency translation rule.
The purpose of the Taxation (Multinational—Global and Domestic Minimum Tax) Amendment (2026 Measures No.1) Rules 2026 (the Amending Rules) is to make administrative amendments to ensure the effective operation of the Domestic Top-up Tax under Chapter 2 of the Taxation (Multinational—Global and Domestic Minimum Tax) Rules 2024 (the Rules).
The Rules were substantively enacted at the end of 2024 to implement the domestic framework for a multinational top-up tax, by providing the computations of top-up tax as detailed under the OECD GloBE Model Rules (as modified by the Commentary, Agreed Administrative Guidance and Safe Harbours Rules) (GloBE Rules).
The Amending Rules aim to ensure that administrative guidance issued by the OECD is appropriately incorporated. It is imperative that the Rules reflect OECD-approved documents so that Australia’s implementation of the GloBE Rules achieves qualified status, which can only be achieved if the Rules are implemented in a manner consistent with the GloBE Rules.
The Amending Rules will retroactively apply from 1 January 2024.
The Australian Government introduced a 15% minimum tax for large companies in 2024, based on rules agreed through the OECD Inclusive Framework. These rules are designed to ensure that large multinational companies pay an effective tax rate of at least 15%. To maintain alignment with the OECD framework, minor amendments to the existing legislation are now required, informed by the latest OECD Administrative Guidance.
