The Australian Government welcomes the settlement reached between the Australian Tax Office and Rio Tinto, which will pay approximately $1 billion in one of the largest tax settlements in Australia’s tax history.
This announcement represents years of hard work by the Tax Office. It is a significant win for everyday Australians, who will ultimately benefit in terms of lower taxes, better services and/or less government debt.
It is also a significant win for Australia’s commitment to tax fairness, and the Albanese Government’s pledge to levelling the playing field for Australian businesses. Labor took to the election substantial commitments to close tax loopholes exploited by multinational companies, cutting off their ability to shift profits to low or no tax jurisdictions.
The Government will continue working alongside the Tax Office to create a system that is fair, transparent, and consistent in holding even the biggest companies to account.
“Our tax system relies on everyone paying their fair share, no more and no less”, said Stephen Jones, Assistant Treasurer.
“This result is a win for confidence in our system and I applaud the ATO’s efforts.
“More importantly, it is a win for taxpayers big and small as the Government continues to manage the current budget situation.”
“This is a big win for the Australian Tax Office, and for Australians. It means more money in the public purse, and more big multinationals agreeing to work with us to make the system fairer”, said Andrew Leigh, Assistant Minister for Competition, Charities and Treasury
“Expecting local firms to compete against tax‑dodging multinationals is like asking them to fight with one hand tied behind their backs. It’s just not fair. Closing multinational tax loopholes will create a better environment for productive firms to flourish, and add to the public confidence in our tax system.
“The Labor Government will move to implement the specific profit‑shifting measures we took to the election. We are also working closely with likeminded countries to implement the OECD/G20 Two Pillar Agreement as swiftly as possible.”