Australia: Passed Taxation (Multinational—Global and Domestic Minimum Tax) Bill 2024

On 22 August 2024, the Taxation (Multinational—Global and Domestic Minimum Tax) Bill 2024 (Assessment Bill) was passed by the House of Representatives and moved to the Senate. The Bill would establish the framework for implementing the Global Anti-Base Erosion rules, which include the Australian Domestic Minimum Tax (DMT), Income Inclusion Rule (IIR) tax, and Undertaxed Profits Rule (UTPR) tax. The Assessment Bill defines the scope of MNEs subject to these taxes, outlines methods for computing minimum tax liabilities, and assigns executive powers necessary to implement prats of the Act. The Bill is part of a set of legislation aiming to implement Pillar 2 of the OECD's Two-Pillar Framework. Out of the other relevant bills, the Taxation (Multinational—Global and Domestic Minimum Tax) Imposition Bill 2024 would impose the taxes set up by the Assessment Bill, while the Treasury Laws Amendment (Multinational-Global and Domestic Minimum Tax) (Consequential) Bill 2024 integrates these taxes into the existing Australian tax framework.