Multinational companies resembling Google and Fb are actually paying tax in Australia based mostly on income earned there as an alternative of shifting earnings overseas, the federal government has mentioned.
Modifications to the tax system will increase an additional 2bn Australian ($1.5bn; £1.2bn) on this tax 12 months, it mentioned.
A brand new regulation targets international corporations with annual incomes of greater than A$1bn.
Corporations had been advised if they didn’t pay what was due they might be taxed at a penalty charge of 40%.
Australian Treasurer Scott Morrison mentioned the federal government had given the Australian Taxation Workplace “the ability, the assets and the penalties to get the job executed”.
He mentioned that Australian tax authorities had been at present conducting 71 audits involving 59 main international companies.
When the Multinational Anti-Avoidance Legislation was proposed in early 2015, the federal government mentioned there have been 30 international companies that paid little or no tax on the income from their Australian operations.
The Australian Tax Workplace was given a 1,000-person sturdy workforce of tax avoidance specialists to give attention to massive corporations and rich people avoiding tax.