Taxation (Multinational—Global and Domestic Minimum Tax) Imposition

“To support the government's effort to crack down on multinationals tax avoidance, the government is introducing the Taxation (Multinational—Global and Domestic Minimum Tax) Bill. This legislation delivers on the government's election commitment to ensure multinationals pay their fair share of tax by implementing a 15 per cent global and domestic minimum tax rate. It forms part of a coordinated approach across more than 130 countries to implement the OECD-G20 two-pillar solution, a 2021 international agreement to address the tax challenges that have been coupled with the rise of the digital economy. This bill also responds to the problem of large multinational corporations seeking to reduce tax by shifting profits from Australia to low-tax or no-tax jurisdictions such as the Cayman Islands, pretending that their headquarters are there, even though they're making the profits here. This effectively erodes Australia's tax base. It reduces the money that can be invested into the vital services that Australians rely upon every day.”

Australian Labor Party • MP • 21 Aug 2024

“Australia has long been a champion of the global 15 per cent minimum tax, and we are now in the first group of nations to implement the global minimum tax and domestic minimum tax of 15 per cent. From this year, this tax will apply to multinational enterprises with an annual global revenue of at least 750 million euros, which is approximately A$1.2 billion or greater. The global minimum tax will ensure large multinational enterprises pay a minimum level of tax on income arising in each jurisdiction where they operate. This will support global momentum towards a fairer international tax system by putting a floor on tax competition and levelling the playing field between large multinational enterprises and Australian businesses.”

Australian Labor Party • MP • 20 Aug 2024

“This is good legislation, and it evidences Australia's commitment to a better, fairer and more equal economic global order. Ernst & Young described the introduction of this regime as a significant shift in global taxation. Australia has been a firm champion of the global 15 per cent minimum tax rate on multinationals. By enacting this legislation now, we will be among a strong group of first movers, the actions of which will bring other nations more quickly to agreement and cooperation. I support the bill and look forward to seeing the intent of this legislation supported across this parliament and across the world.”

Australian Labor Party • MP • 20 Aug 2024

“I'm pleased to rise today to speak in support of this bill, the Taxation (Multinational—Global and Domestic Minimum Tax) Bill 2024. I would note from the outset that is one of a package of three bills which together enact a 15 per cent global minimum tax and domestic minimum tax for multinational enterprises operating in Australia with an annual global revenue of 750 million euros or greater, which is approximately A$1.2 billion. There are other bills as part of this package which relate to capital thinning and greater transparency across jurisdictions.”

Australian Labor Party • MP • 20 Aug 2024

“The Albanese Labor government is committed to ensuring that big multinational corporations that make a profit in Australia pay tax in Australia. This was an election commitment, and I'm happy to speak in support of this necessary reform, the Taxation (Multinational—Global and Domestic Minimum Tax) Bill 2024. It builds on the substantial reforms already implemented by Labor regarding the taxation of large multinational corporations.”

Australian Labor Party • MP • 20 Aug 2024

“In addition to a global minimum tax, this legislation—the Taxation (Multinational—Global and Domestic Minimum Tax) Bill 2024 and related bills—also implements a domestic minimum tax which will give Australia additional taxing rights on the low-taxed Australian income of large multinational groups. This is a critical safeguard to ensure that Australia collects revenue from local undertaxed profits.”

Australian Labor Party • MP • 21 Aug 2024

“Tonight, I would like to urge those sitting on the crossbench to support this crucial piece of legislation to ensure that multinational corporations both globally and domestically are taxed fairly, because every Australian taxpayer needs to be treated fairly.”

Australian Labor Party • Senator • 10 Sept 2024

“These bills, the Taxation (Multinational—Global and Domestic Minimum Tax) Bill 2024 and related bills, are just the next step in our government's agenda to deliver on our commitments. They legislate the powers necessary to allocate top-up taxes where companies have not paid at least a 15 per cent rate of corporate tax. That can be in Australia or in another jurisdiction. In effect, this sets a global floor on corporate taxes, directly addressing the race to the bottom of corporate tax, ensuring that when companies may be doing the wrong thing, when they may be shifting profits to avoid paying their fair share of tax, there is a multilateral approach to correcting that.”

Australian Labor Party • Senator • 10 Sept 2024

“In conclusion, this bill builds on the coalition's world leadership of acting in the Australian national interest, and I believe the current government must do more. The tax-avoiding multinationals do not have Australia's best interests at heart, and we need the federal government to stand up to them.”

National Party • MP • 21 Aug 2024

“This taxation measure is something that the coalition believes is overdue. Labor needs to stop whacking everybody with its high taxes, but the bill is, as I say, something that very much needs to be looked at.”

National Party • MP • 21 Aug 2024

“These are important bills. They have our support, but that support should not be given by the coalition in a way that doesn't acknowledge the promises that have been broken and the serious work that has to be done on out-of-control spending by this government which is impacting the task of bringing inflation down now and doing nothing to fix that horror story that we see in the Intergenerational report of 40 years from now. We must all, as a matter of urgency, turn our mind to that.”

Liberal Party • MP • 20 Aug 2024

“As we've seen with multinationals over a period of time, there have been real concerns about whether we are getting multinationals paying their fair share of tax. That's why, when the coalition were in government, we started a process of making sure that multinationals would be taxed fairly. As the Deputy Speaker and everyone in this chamber knows, that was incredibly important work. What we're seeing from the government is a continuation of that process, including the OECD two-pillar solution to multinational tax avoidance. We obviously support that work, because we want to make sure that multinationals are paying their fair share. As I illustrated in the example before, if we're not getting everyone to pay their fair share, then pressure comes onto government to provide the services that they need.”

Liberal Party • MP • 21 Aug 2024

“While the coalition will not oppose this legislation, we will not apologise for holding the government to account for their broken promises on tax and their failure to take meaningful action on productivity and indeed potentially making the problem even worse.”

Liberal Party • Senator • 26 Nov 2024

“Australians deserve a government that is focused on the challenges they face today. And while the coalition will not oppose this legislation, we will not apologise for holding this government to account for their broken promises on tax, their failure to take meaningful action on productivity, and their lack of focus on fighting inflation. We need a government that prioritises the economic wellbeing of all Australians and takes real steps to address the cost-of-living crisis, improve productivity and, importantly, restore confidence in our economy.”

Liberal Party • Senator • 10 Sept 2024

“This bill implements internationally agreed rules to ensure that multinational corporations with an annual global revenue of A$1.”

Australian Greens • Senator • 10 Sept 2024

“The Greens will support this bill, the Taxation (Multinational—Global and Domestic Minimum Tax) Bill 2024, through the House, but we will reserve our position in the Senate.”

Australian Greens • MP • 20 Aug 2024

“Equalising or at least bringing business costs closer, irrespective of where the business is domiciled, can't come at a more important time. Across Australia, corporate insolvencies are surging, as inflation, cost of living and energy prices are taking effect. In the last 12 months, insolvencies exceeded 10,000 for the first time since 2013. The trend is alarming. For the first nine months of the financial year, insolvencies rose by 36.2 per cent on the previous corresponding period. Monthly filings reached 1,137 insolvencies in March 2024. That was a record until May, when 1,249 new cases were initiated. While most of these companies are local, the benefit of a globally [inaudible] tax system will result in more companies investing or relocating their operations to Australia, with flow-on effects to the local economy. It is also reasonable to conclude that some of the $976 billion—nearly a trillion—in outbound foreign direct investment emanating from Australian businesses in 2022 would be redirected into Australia, creating local jobs and local opportunities. This bill provides improved fairness across the global economy. It is an appropriate reform and one that I certainly support. I thank the House.”

Centre Alliance • MP • 20 Aug 2024