The Australian Senate Economics Legislation Committee released its report regarding the provisions of three legislations aimed at implementing the Pillar Two global minimum tax in Australia. The report recommends that the bills be passed.
The legislation includes:
- Imposition Bill: Taxation (Multinational—Global and Domestic Minimum Tax) Imposition Bill 2024;
- Assessment Bill: Taxation (Multinational—Global and Domestic Minimum Tax) Bill 2024;
- Consequential Bill: Treasury Laws Amendment (Multinational— Global and Domestic Minimum Tax) (Consequential) Bill 2024.
The new laws will set a 15% global minimum tax and domestic minimum tax for all multinational enterprise groups with annual global revenue of at least EUR 750 million (approximately AUD 1.2 billion) effective from 1 January, 2024. The legislation also provides for the implementation of the Australian Domestic Minimum Tax (DMT) tax, Australian Income Inclusion Rule (IIR) tax, and Australian Undertaxed Profits Rule (UTPR) tax.
Australia’s Treasurer Jim Chalmers announced this legislation on 4 July, 2024, which ensures multinational companies pay a fairer share of tax in Australia.
