Global agreement on corporate taxation: addressing the tax challenges arising from the digitalisation of the economy

This consultation process has now been completed. Submissions available
Consultation Type
Consultation Paper

Key Documents

On 8 October 2021 Australia and over 130 other countries endorsed proposed international corporate tax reforms to address the challenges arising from the digitalisation of the economy. These reforms were developed by the OECD Inclusive Framework on Base Erosion and Profit Shifting and presented as a two‑pillar solution that would help ensure that multinationals pay their fair share of tax in the jurisdictions in which they operate.

Pillar One

Pillar One would reallocate some of the taxing rights on the largest and most profitable multinationals to the countries where the goods and services are consumed. Critical aspects of Pillar One are still being negotiated at the international forum, resulting in a delay in the proposed implementation timeframe to 2024 (under the historic October 2021 agreement, both pillars were to commence operation in 2023).

Pillar Two

Pillar Two of the proposed reforms seeks to put a floor on the ‘race to the bottom’ on corporate tax rates by establishing a global minimum corporate tax rate of 15 per cent. The OECD  has released the Pillar Two model rules that set out the structure of Pillar Two along with additional technical guidance on their operation. An Implementation Framework is due to be completed by the end of 2022 to support domestic implementation and administration of the model rules. The OECD implementation plan envisages that Pillar Two will take effect in 2023.


Treasury is launching public consultation to seek views from interested parties on how Australia can best engage with the two-pillar solution, including the Pillar Two Model Rules and Commentary.

To support consultation and elicit feedback, a consultation paper is available for stakeholders’ consideration.

Written submissions are sought from stakeholders on the questions contained in the consultation paper.