04/10/22

AUSTRALIA: Treasurer Jim Chalmers outlines multinational tax reform agenda.

As published on braidwoodtimes.com.au, Monday 3 October, 2022.

Global companies could face added payments in Australia following an international push on multinational tax reforms.

Treasury is poised to release its consultation paper on international corporate tax reform on Tuesday, which is set be in line with the rest of the OECD.

The changes could see companies like Google, Apple and Facebook pay their fair share in tax from respective jurisdictions.

Treasurer Jim Chalmers outlined the government's package would look at closing loopholes which are allowing big global firms to evade paying the going company tax rate.

"Our multinational tax package will address tax loopholes exploited by multinationals and improve tax transparency," Dr Chalmers said.

"This will benefit Australians by helping to fund vital services like Medicare, aged care and childcare; helping to service the trillion dollars of debt racked up by the former government; and levelling the playing field for Australian businesses."

Submissions are set to open on Tuesday which Treasury hopes will help create the framework of multinational tax rates in Australia.

The OECD has agreed on a minimum corporate tax rate of 15 per cent international companies. The consultation period ends in November.

"This is all about consulting widely on the proposed OECD multinational tax changes and what they'd mean for Australia."