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 Wednesday 7 August 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:
Recap of Australia’s adoption of the Implementation of a global minimum tax and a domestic minimum tax changes to date
A recap on the measure and associated impacts on DSPs was provided.
The ATO recognises DSPs need clarification on the expected number of lodgments for this regime when considering commercial viability.
The due date for the first report will be 30 June 2026 to align with the GloBE Information Return (GIR), 18 months after the financial year end. The due date for clients will vary depending on their fiscal year.
Insight into potential volumes
Work continues into the potential in-scope population for Pillar Two using historical data. A preliminary analysis of anticipated volumes was provided.
Draft data elements
The draft domestic forms and associated data points were shared with the group. The GIR datapoints are quite extensive and a considerable amount of information can be leveraged for the domestic returns.
There are 3 Australian domestic forms required:
- Foreign notification form
- Australian IIR/UTPR form
- Australian DMT form
The decision of whether they are grouped as a complete offering, or are standalone forms is to be determined.
Channel discussion
There was conversation around feasibility and the most suitable channel for the service.
Next steps
The project team will be presenting at the upcoming Tax Time event in Canberra, scheduled for 4 and 5 September.
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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