![Assistant Minister for Competition, Charities and Treasury Andrew Leigh. Picture by Elesa Kurtz Assistant Minister for Competition, Charities and Treasury Andrew Leigh. Picture by Elesa Kurtz](/images/transform/v1/crop/frm/202296158/1779363a-83d8-45c5-a81e-aa96cd326001.jpg/r0_0_4166_2663_w1200_h678_fmax.jpg)
International efforts to close tax loopholes for multinational companies will be the focus of a meeting involving peak business groups, tax experts and major investors being hosted by Treasury on Monday.
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As the federal government faces a massive budget repair task despite an unexpected surge in tax receipts, one of the world's foremost authorities on multinational taxation, Organisation for Economic Cooperation and Development official David Bradbury, will provide a briefing on global progress in implementing reforms committed to by 136 countries more than a year ago.
In its October budget, the government estimated the first wave of reforms, including limiting deductions for debt and intangibles and improving transparency, would net an extra $953 million of revenue over four years.
The second tranche of reforms call for multinationals with revenues topping $1.2 billion pay at least 15 per cent tax on income arising from each jurisdiction in which they operate.
Assistant Minister for Competition, Charities and Treasury Andrew Leigh, who will chair the meeting, said it was an opportunity to learn about progress other countries were making in tightening the taxation of companies that operate across multiple jurisdictions.
"Ensuring that multinationals pay their fair share is fundamental to securing Australia's revenue base, and funding public services such as health, education and transport," Dr Leigh said.
"If multinationals can exploit loopholes that aren't available to local firms, it distorts competition and undermines the fair go."
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There has been mounting international alarm and anger over the ability of multinationals to exploit differences in tax regimes to avoid paying tax in countries which are significant sources of revenue.
In October 2021, almost 140 countries signed up to an OECD package of reforms that are expected to generate more than $224 billion in extra tax revenues.
"This roundtable will be a terrific chance to hear from one of the world's leading experts on multinational taxation, and to understand how other nations are approaching the tax challenges of the digital economy," Dr Leigh said.
"Australia's public debt is too high, and our multinational tax loopholes are too large. Our government is committed to building a fairer tax system, and a stronger economy."
Among those attending the meeting will be representatives from the Business Council of Australia, the Tax Institute, Australian Super, KPMG, SEEK, the Property Council and the Corporate Tax Association.
There are mounting calls for major reform to broaden the nation's tax base to meet the growing cost of services, particularly as the population ages.
Independent MP Allegra Spender organised a tax summit on March 31 and earlier last month former Treasury secretary Ken Henry told the Tax Institute the tax system was "in a parlous state".
While government spending was growing strongly, Dr Henry said, "a shrinking proportion of the population ... will have to shoulder a rapidly accelerating share of the burden of financing government".
The government recently tightened tax concessions for people with very large superannuation balances and the Australian Financial Review has reported it is also looking at increasing the tax take from gas producers.
And the latest update from the Department of Finance shows surging tax receipts from high employment and strong company profits mean the budget deficit is on track to be $20.5 billion smaller than expected.
But the mounting interest bill from heavy borrowing, combined with the spiralling cost of the National Disability Insurance Scheme and major outlays in defence, aged care and health, are all expected to weigh on the budget.
The financial pressure has fueled calls for the government to revisit the $243 billion stage three tax cuts, but this suggestion has been steadfastly rejected by Prime Minister Anthony Albanese and Treasurer Jim Chalmers.