Source: New places to play in Gungahlin
The Global Anti-Base Erosion Model Rules (GloBE rules) provide for a coordinated system of taxation intended to ensure multinational enterprise groups (MNE groups) are subject to a global minimum tax rate of 15% in each of the jurisdictions where they operate.
On 10 December 2024, the Taxation (Multinational—Global and Domestic Minimum Tax) Act 2024 (the Act) received Royal Assent. It is part of a primary legislation package which implements the framework of the GloBE rules in Australia.
Certain entities in MNE groups are excluded from the operation of the Australian global and domestic minimum tax. Relevantly, the Act provides an exclusion for entities considered to be a ‘non-profit organisation’.
The ATO will consult with members of the Not-for-profit Stewardship Group and tertiary education sector representatives to inform its understanding of the scope of the ‘non-profit organisation’ exclusion and broader administration of the new measure.