Senator the Hon Mathias Cormann

The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP today introduced legislation to give the force of law to a new tax treaty between Australia and Germany.

"This new treaty was signed in November 2015 and will replace the existing 1972 Double Taxation Agreement,” Minister O’Dwyer said.

"This is an important and necessary new tax treaty for Australia, which has been welcomed by Australian and German businesses. The new treaty rules provide increased certainty for these businesses and reduce tax impediments to bilateral trade and investment. 

"The new treaty implements OECD/G20 Base Erosion and Profit Shifting (BEPS) integrity rules that will minimise tax avoidance opportunities, further demonstrating the Turnbull Government’s resolve to ensure that multinational corporations pay the right amount of tax in Australia.”

It also implements a centrepiece recommendation of the Australia-Germany Advisory Group, co-chaired by Senator the Hon Mathias Cormann, that a new treaty is required to modernise bilateral tax arrangements.

This treaty will come into force once the Australian legislation has passed, Germany completes its domestic requirements, and instruments of ratification have been exchanged.