Taxation (Multinational—Global and Domestic Minimum Tax) (Qualified GloBE Taxes) Amendment (Measures No. 1) Determination 2026

Administered by Department of the Treasury

Legislation au F2026L00291 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Assistant Minister for Productivity, Competition, Charities and Treasury

Taxation (Multinational—Global and Domestic Minimum Tax) Rules 2024 

Taxation (Multinational—Global and Domestic Minimum Tax) (Qualified GloBE Taxes) Amendment (Measures No. 1) Determination 2026

Section 29 of the Taxation (Multinational—Global and Domestic Minimum Tax) Act 2024 (the Act) provides that the Minister may make Rules prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. Section 30 of the Act provides that these Rules may confer a power on the Minister to make a legislative instrument.

The relevant sections of the Taxation (Multinational—Global and Domestic Minimum Tax) Rules 2024 (the Rules) that allow the Minister to make the Taxation (Multinational—Global and Domestic Minimum Tax) (Qualified GloBE Taxes) Determination 2025 (the Determination) are:

  • paragraph 10-15(a) – specifying a tax that is a Qualified Income Inclusion Rule (IIR);
  • paragraph 10-15(b) – specifying a tax that is a Qualified Domestic Minimum Top-up Tax (DMTT); and
  • subsection 8-200(2) – specifying a jurisdiction that has QDMTT Safe Harbour status for the Fiscal Year.

The purpose of the Determination is to specify that a jurisdiction has a Qualified IIR tax, a Qualified DMTT or that the Minister is satisfied a jurisdiction has QDMTT Safe Harbour status for a Fiscal Year.

In August 2025 and January 2026 the OECD released further jurisdictions that have implemented IIR and DMTT legislation with transitional qualifying status. Transitional qualified status is obtained where OECD Inclusive Framework members determine whether the legislation of an implementing jurisdiction is sufficiently consistent with the OECD GloBE Rules, via a common peer review process. Qualification status is important for the agreed rule order of the GloBE Rules and ensures that a jurisdiction’s domestic legislation is implemented and applied consistently to the GloBE Rules.

The purpose of the Amending Determination is to align with the OECD’s central record by adding the following 12 jurisdictions that have a Qualified IIR, Qualified DMTT and QDMTT Safe Harbour Status to sections 5, 6 and 7 of the Determination:

•                 Gibraltar

•                 Hong Kong (China)

•                 Indonesia

•                 Isle of Man

•                 Malaysia

•                 North Macedonia

•                 Poland

•                 Portugal

•                 Qatar

•                 Singapore

•                 South Africa

•                 Thailand

The following 4 jurisdictions are added to section 5 of the Determination that specifies a jurisdiction has a Qualified IIR for Fiscal Years beginning on or after a specified date:

•                 Jersey

•                 New Zealand

•                 Switzerland

•                 Thailand

The following 5 jurisdictions are added to section 6 and 7 of the Determination that states that a jurisdiction has a Qualified DMTT and Qualified DMTT Safe Harbour Status for Fiscal Years beginning on or after a specified date:

•                 Bahrain

•                 Brazil

•                 Japan

•                 Qatar

•                 United Arab Emirates

The Act does not specify any conditions that need to be satisfied before the power to make the Determination may be exercised.

The Australian Taxation Office (ATO) was consulted in developing the instrument and provided valuable feedback to ensure alignment with the OECD’s central record of legislation with qualifying status. The ATO’s feedback has been incorporated into the final instrument.

Broader consultation with affected entities was not undertaken due to the OECD’s central record of legislation, being publicly available and recording some jurisdictions as having qualifying status for financial years commencing after 31 December 2023. Therefore, it was desirable to make the declaratory Amending Determination that implements the OECD’s central record into domestic law as soon as practicable to provide certainty to affected entities. The affected entities would have been reasonably aware of OECD’s list of jurisdictions with qualifying status. Therefore, finalising the instrument without consulting industry members is appropriate given the previous awareness and limited impact on the GloBE computations.   

The Amending Determination is a legislative instrument for the purposes of the Legislation Act 2003. The Amending Determination is subject to disallowance and sunsetting in accordance with sections 42 and 50, respectively, of the Legislation Act 2003.

The Amending Determination commenced on the day after the Amending Determination was registered on the Federal Register of Legislation.

A Statement of Compatibility with Human Rights is at Attachment A.

The Amending Determination operates to specify jurisdictions with qualifying GloBE taxes retrospectively. This retrospective application is necessary and consistent with the policy outlined in the OECD GloBE Rules that allows jurisdictions to adopt the Rules from 31 December 2023. The retrospective application of the Amending Determination is supported by section 32 of the Act which provides that any legislative instruments made under the Rules are not affected by the operation of subsection 12(2) of the Legislation Act 2003.

The Office of Impact (OIA) Analysis has been consulted. A list of reports certified as equivalent to a Policy Impact Analysis can be found at https://oia.pmc.gov.au/published-impact-analyses-and-reports/two-pillar-solution-addressing-tax-challenges-arising. The full list of reports and executive summaries of those reports are also available in the Explanatory Memorandum for the Taxation (Multinational-Global and Domestic Minimum Tax) Act 2024 as these reports have been certified for the Assessment Act and the Rules.


Attachment A

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Taxation (Multinational—Global and Domestic Minimum Tax) (Qualified GloBE Taxes) Amendment (Measures No.1) Determination 2026

This Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The purpose of the Amending Determination is to specify additional jurisdictions that have a Qualified IIR tax, a Qualified DMTT or that the Minister is satisfied a jurisdiction has QDMTT Safe Harbour status for a Fiscal Year. These amendments are aligned with the OECD’s central record that specifies jurisdictions that have qualifying GloBE taxes.

Human rights implications

This Amending Determination does not engage any of the applicable rights or freedoms.

Conclusion

This Amending Determination is compatible with human rights as it does not engage any human rights issues.

 

Overview

The Taxation (Multinational—Global and Domestic Minimum Tax) Act 2024 was enacted to address the problem of base erosion and profit shifting by multinational enterprises, ensuring that a fair share of tax is paid by such entities in the jurisdictions where they operate. This Act was introduced to align Australia's tax system with the OECD's Global Anti-Base Erosion (GloBE) Rules, aiming to establish a global minimum tax rate and ensure a level playing field in international taxation. The Act was enacted by the Australian Parliament, with the policy objective of promoting a fair and efficient tax system that discourages profit shifting and protects the domestic tax base. The Act provides the framework for implementing the GloBE Rules in Australia, including the establishment of a global minimum tax rate and measures to ensure that multinational enterprises pay an appropriate level of tax in each jurisdiction where they operate. The explanatory statement accompanying the (Multinational—Global and Domestic Minimum Tax) Rules 2024 and the (Qualified GloBE Taxes) Amendment (Measures No. 1) Determination 2026 highlights the need to specify jurisdictions that have implemented the GloBE Rules in compliance with the OECD’s requirements. This specification is crucial for determining the applicability of the global minimum tax rules and ensuring consistency with the agreed-upon order of the GloBE Rules. The Determination aims to align with the OECD's central record, which publicly lists jurisdictions with qualifying status, thus providing certainty to affected entities. This alignment helps to ensure that the implementation of the GloBE Rules in Australia is consistent with international standards and facilitates the smooth operation of the global tax system.

Scope and Application

The Taxation (Multinational—Global and Domestic Minimum Tax) (Qualified GloBE Taxes) Amendment (Measures No. 1) Determination 2026 applies to the jurisdictions identified within the Determination that have been specified as having Qualified Income Inclusion Rule (IIR) taxes, Qualified Domestic Minimum Top-up Tax (DMTT), or Qualified DMTT Safe Harbour status for specified fiscal years. These jurisdictions include Gibraltar, Hong Kong (China), Indonesia, Isle of Man, Malaysia, North Macedonia, Poland, Portugal, Qatar, Singapore, South Africa, and Thailand. The Determination also adds Jersey, New Zealand, Switzerland, and Thailand to the list of jurisdictions with Qualified IIR for fiscal years beginning on or after a specified date, and Bahrain, Brazil, Japan, Qatar, and United Arab Emirates to the list of jurisdictions with Qualified DMTT and Qualified DMTT Safe Harbour status for fiscal years beginning on or after a specified date. The Determination operates to align Australia’s legislation with the Organisation for Economic Co-operation and Development’s (OECD) central record, providing certainty to affected entities regarding the application of the GloBE Rules. The Determination is retrospective and does not require consultation with affected entities due to the public availability of the OECD’s central record of qualifying jurisdictions. The Determination is subject to disallowance and sunsetting under the Legislation Act 2003 and is compatible with human rights as it does not engage any human rights issues.

Key Provisions

The Taxation (Multinational—Global and Domestic Minimum Tax) (Qualified GloBE Taxes) Amendment (Measures No. 1) Determination 2026 (the Determination) is a legislative instrument made under section 29 of the Taxation (Multinational—Global and Domestic Minimum Tax) Act 2024 (the Act). It specifies certain jurisdictions that have a Qualified Income Inclusion Rule (IIR) tax, a Qualified Domestic Minimum Top-up Tax (DMTT), or that the Minister is satisfied a jurisdiction has QDMTT Safe Harbour status for the Fiscal Year. This is achieved through amendments to the Taxation (Multinational—Global and Domestic Minimum Tax) (Qualified GloBE Taxes) Determination 2025 (the Determination) to align with the Organisation for Economic Co-operation and Development’s (OECD) central record of jurisdictions with qualifying GloBE taxes. The Determination is retrospective, which is consistent with the policy outlined in the OECD GloBE Rules, allowing jurisdictions to adopt the Rules from 31 December 2023. The Determination imposes obligations on the Minister for Productivity, Competition, Charities and Treasury Taxation to align the domestic legislation with the OECD’s central record of jurisdictions with qualifying GloBE taxes. The Determination specifies 16 jurisdictions that have a Qualified IIR, Qualified DMTT, or QDMTT Safe Harbour status for the Fiscal Year. The Determination is made to provide certainty to affected entities and to implement the OECD’s central record of legislation with qualifying status into domestic law as soon as practicable. The Australian Taxation Office (ATO) was consulted in developing the instrument and provided valuable feedback to ensure alignment with the OECD’s central record. The ATO’s feedback has been incorporated into the final instrument. There are no offences, penalties, or civil/criminal consequences for breach of the Determination. The Determination is a legislative instrument for the purposes of the Legislation Act 2003 and is subject to disallowance and sunsetting in accordance with sections 42 and 50, respectively, of the Legislation Act 2003. The Determination commenced on the day after the Determination was registered on the Federal Register of Legislation. A Statement of Compatibility with Human Rights is attached to the Determination, which states that the Determination is compatible with human rights as it does not engage any human rights issues.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.