Multinationals could soon face tougher laws to stop them exploiting tax loopholes in Australia as the federal government's reform agenda takes shape.
Labor committed to crack down on multinational tax loopholes ahead of the election and the changes are now in draft legislation form.
A Senate committee last month recommended passing the government's bill with some technical amendments, which are open for public consultation until October 30.
These changes relate to thin capitalisation rules, which are designed to prevent multinationals from shifting profits out of a country by operating in that country with high levels of debt.
Treasurer Jim Chalmers and Assistant Minister for Treasury Andrew Leigh said when global multinationals exploit loopholes to pay less tax, they gain an unfair advantage over local businesses.
"Labor will continue working to close multinational tax loopholes and prevent companies unfairly shifting profits to tax havens," Dr Chalmers and Dr Leigh said in a joint statement on Wednesday.
"Our plan is good for taxpayers, good for competition, and good for Australia."
