Treasury Laws Amendment (Multinational—€”Global and Domestic Minimum Tax) (Consequential) 2024

# Treasury Laws Amendment (Multinational—Global and Domestic Minimum Tax) (Consequential) 2024 **What it does** This bill makes technical updates to Australia's tax laws to work properly with the new global minimum tax rules that came into effect in 2024. It adjusts how Australian tax authorities treat certain types of foreign taxes paid by multinational companies, so the tax system operates consistently with the new minimum tax framework. **Why it matters** Multinational companies have historically shifted profits to low-tax countries to reduce their overall tax bills. The new global minimum tax agreement sets a floor of 15% on what large companies pay worldwide—this bill ensures Australia's tax system correctly implements that standard and doesn't double-count certain foreign taxes. **Key details** - The bill specifically excludes certain foreign "GloBE taxes" (Pillar Two minimum taxes paid overseas) from being treated as foreign tax credits in Australia. This prevents companies from using these international minimum taxes to reduce their Australian tax liability. - It applies to several existing tax laws including the Income Tax Assessment Acts of 1936 and 1997, updating definitions and rules so they align with the new multinational tax rules. - The changes take effect at the same time as the main global minimum tax legislation commenced—this is a supporting measure with no separate commencement date.

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