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 Tuesday 9 July 2024.
Key outcomes
Below is a summary of the key meeting outcomes. Note: the full outcomes are available in Online services for DSPs.
At this meeting, discussion points were:
Overview of Australia’s adoption of the implementation of global minimum tax and domestic minimum tax changes
New legislation was introduced on 4 July, with further details to be outlined in subordinate legislation by November 2024.
ATO’s feedback on the OECD’s GIR schema has been provided, public consultation and DSP feedback expected soon, with further revisions anticipated.
Approximately 6,000 groups in Australia to file the GIR, subject to exclusions, with approximately only 130 to 140 of these being Australian headquartered.
Communication strategy
The ATO’s landing page now includes the latest information on the Implementation of Global and Domestic Minimum Tax, detailing exclusions, OECD safe harbors, and return requirements.
Extensive discussions with industry bodies and professionals have been conducted to reduce compliance costs and understand DSP limitations before engaging Tax Practitioners.
Group discussions and questions
The group engaged in discussion around:
- GIR and other Local Forms
- Foreign Notification Form
- Changes to IDS and other Tax Return Forms
- Domestic Minimum Tax and GIR
- DSP Considerations
- Technical Requirements and Timeline
- OECD GIR XML Schema
Next steps
The working group will reconvene after the review and feedback of the GIR Schema. The consultation period closes mid-August and is set to be finalised in September 2024.
For any questions about Australia’s adoption of the implementation of global minimum tax and domestic minimum tax working group, please raise a ticket in the DSP Service desk.
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