Australia Projects $173 Million Hit From US Global Tax Carve-out

Australia expects that a carve-out from a global minimum tax agreed to by over 140 countries at the OECD in January will decrease its tax receipts by A$240 million ($173 million) over five years.

The country’s Treasury would also budget A$11 million for the Australian Taxation Office over five years to administer the carve-out, referred to as the “side-by-side” system, according to the 2026-2027 budget circulated Tuesday by Treasurer Jim Chalmers and Finance Minister Katy Gallagher.

The side-by-side package will apply retroactively, starting Jan. 1, 2026.

“This measure continues to advance the Government’s multinational tax reform agenda by supporting ...