The introduction of the Treasury Law amendments are targeted towards multinationals and foreign investors and making sure they pay their fair share of tax.
In a statement released by Treasurer Josh Frydenberg, he stated that the bills would guarantee the essential services and infrastructure that Australians rely on by ensuring tax is paid.
The first bill will crack down on foreign investors who use stapled structures and broader tax concessions on income from investments to get a lower tax rate.
The government claims the new measure will see hundreds of millions of dollars kept in Australia and, if it is left alone, could see Australia foregoing billions in revenue.
The second bill tackles multinational tax avoidance, such as diverted profits tax, and will prevent multinationals from manipulating the values of their assets to increase debt deductions and reduce tax payable.
In the statement, Mr Frydenberg said the measures would result in millions of GST revenue and billions in sales income returned to Australia.
“Making sure foreign investors and multinationals pay their fair share of tax is part of the Coalition government’s plan for a stronger Australian economy, more jobs for Australians and guaranteeing the essential services that Australians rely on,” Mr Frydenberg said.
