UA and a working group of tax experts at member institutions have reviewed the primary exposure draft legislation and associated documents for the Global and Domestic Minimum Tax Legislation.1 From this review we submit the following:

1. The wording of the exposure draft bill Taxation (Multinational – Global and Domestic Minimum Tax) Bill 2024 (the ‘exposure draft’) is not consistent with the terminology used in existing Australian tax or charitable legislation. We consider this creates unnecessary and unintended uncertainty and complexity.
2. To remove uncertainty, UA submits that the draft legislation be amended to specifically include within the definition of ’non-profit organisations’ all entities with current registration as a Charity with the Australian Charities and Not-for-profit Commission (ACNC) under the Australian Charities and Not-for-profits Commission Act 2012. If a tax source is preferred, then reference may be made to entities endorsed by the ATO as income tax exempt charities under the exempt from income tax under s50 of ITAA 97.
3. We consider that adopting our submission is in line with both the OECD intention and in line with existing Australian policy goals in respect of international taxation, higher education, and the charity sector.