Australia’s adoption of the implementation of global minimum tax and domestic minimum tax working group meeting – 7 December 2023

Original Published Date
Status
Current
Tax Category
Payroll
Tax preparation
Business accounting
Resource Type
Consultative groups
Description

On 9 May 2023, the Treasurer announced in the 2023–24 Budget that the Australian Government will implement the Organisation for Economic Cooperation and Development (OECD) Global Anti-Base Erosion (GloBE) Model Rules (also known as global minimum tax) and a domestic minimum tax. 

This measure is not yet law and new legislation will be introduced.

The purpose of this working group is to co-design and discuss technical considerations for implementation of the measure, ensuring alignment with the ATO’s requirements and standards as well as providing a good user experience. 

This meeting was held via webinar on Thursday 7 December 2023

Key outcomes

Below is a summary of the key meeting outcomes. Note: the full outcomes are available in the Online services for DSPs.

At this meeting, discussion points were:

Introduction to Pillar two: GloBE and Domestic Minimum Tax

The group was provided with an introduction to the measure and update on the Legislative process and OECD perspective as well as the consultation to date for phase 1, phase 2 and now phase 3.

Market insights – Expected impacts and Prior engagement key points

The group was provided with an overview of what impacts are expected from what is understood of the measure so far. Topics included the GloBE Information Return (GIR), dependency on OECD, Domestic Tax Forms, business requirements summary, key milestones and market insights.

Group discussions and questions

Key discussion points were:

  • Consideration to be given to consistency with existing lodgment patterns when
    designing new services
  • DSPs appreciate early guidance on the measure details and anticipated impacts

The project team was keen to better understand DSP familiarity with the measure and preparedness for implementation. The group were requested to provide their feedback by 2 January 2024.

Next steps

The Terms of Reference for this working group is available on Online services for DSPs for members review and endorsement, and will be requested at the next working group meeting to be scheduled around April 2024.

No previous versions available.

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