The federal government has netted a record $6.4 billion windfall from a crackdown on tax avoidance by multinationals and large companies, particularly in the oil and gas sector.
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In a revenue boost that helped deliver the first budget surplus in 15 years in 2022-23, the Australian Taxation Office's Tax Avoidance Taskforce secured multibillion dollar payments from a range of operators including Rio Tinto ($1 billion), Ampol ($157 million) and ABI ($159 million).
In recent years the taskforce has raised around $2 billion of additional revenue each year from action on company tax avoidance.
The extra $4.4 billion secured last financial year largely stemmed from the successful outcome of legal action launched against Chevron which ended interest deductions in the oil and gas sector.
![Assistant Minister for Treasury Andrew Leigh says the government wants to prevent multinationals from 'unfairly shifting profits to tax havens'. Picture by Elesa Kurtz Assistant Minister for Treasury Andrew Leigh says the government wants to prevent multinationals from 'unfairly shifting profits to tax havens'. Picture by Elesa Kurtz](/images/transform/v1/crop/frm/202296158/27c38904-9a14-444f-b215-4d1da3773de6.jpg/r0_214_4185_2567_w1200_h678_fmax.jpg)
The taskforce has also obtained settlements from a range of other multinationals in recent years that have locked in future tax outcomes. Companies involved have included Google, BHP, Apple ResMed and Microsoft.
Treasurer Jim Chalmers said the extra $4.4 billion in revenue was "a big outcome and a big demonstration of the Albanese Government's commitment to ensuring multinationals pay their fair share of tax".
"Australians rightfully expect all companies to meet their obligations, just like they do," Dr Chalmers said.
The government delivered an additional $200 million a year to the taskforce in the October 2022 budget which will extend to mid-2025.
The funding boost is part of a broader agenda to crackdown on multinational tax avoidance.
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Last week the government unveiled proposed amendments to tax laws aimed at closing loopholes exploited by large companies operating across multiple jurisdictions.
The amendments target so-called 'thin capitalisation' rules which cover highly-geared entities that fund their activities by more debt than equity.
An entity that is highly geared funds its assets with proportionately more debt than equity.
Australia is also part of the Organisation of Economic Cooperation and Development's initiative to improve the taxation of multinationals and reduce their scope to dodge tax obligations.
The initiative aims to ensure multinationals pay an effective 15 tax rate on profits in every jurisdiction in which they operate.
Assistant Minister for Treasury Andrew Leigh said the government aimed to prevent companies "unfairly shifting profits to tax havens".