The Albanese government has proposed a new tax package that it said will close tax loopholes exploited by multinationals and improve tax transparency.
“Multinational corporations making a profit in Australia should pay their fair share of tax in Australia,” Treasury ministers Jim Chalmers, Stephen Jones and Andrew Leigh said in a joint statement.
These commitments complement the government’s ongoing engagement in the OECD’s Two‑Pillar Global Tax Agreement, which includes a global minimum tax and are measured and targeted, without imposing unnecessary handbrakes on genuine business activity.
Miners, oil and gas producers and technology companies are among the multinational companies the government is targeting through proposed new laws.
About $1.4 billion of the extra revenue over four years is slated to come from capping interest deductions at 30 per cent of earnings before interest, taxes, depreciation, and amortisation (EBITDA).
Commissioner of Taxation Chris Jordan said last month the model by which resource companies repeatedly flouted rules to avoid paying tax has effectively been broken, delivering an extra $12 billion to the budget bottom line since 2017.
The public has been invited to have its say on the commitments with submissions open until 2 September.
To access the discussion papers or lodge a submission, visit the Treasury website.
