Australia introduces Pillar Two Exposure Draft legislation – 25 March 2024

On 21 March 2024, Treasury released the highly anticipated Exposure Draft legislation for the implementation of Pillar Two in Australia. The package of Exposure Draft legislation includes both primary and subordinate legislation, along with accompanying explanatory materials and a discussion paper for stakeholder consultation and feedback. 

The proposed income inclusion rule (IIR) and domestic minimum tax (DMT) will commence for income years starting on or after 1 January 2024, whilst the undertaxed profits rule (UTPR) will commence for income years starting on or after 1 January 2025.