Global Daily Tax News, Australia Consults On Proposed Pillar Two Filing Exemptions, (Aug 29, 2025)

The Australian Taxation Office has launched a consultation on draft legislation providing relief from certain lodgment obligations for in-scope multinational enterprise (MNE) groups in circumstances where top-up tax amounts will always be nil.

The consultation concerns Taxation Administration (Exemptions from Requirement to Lodge Australian IIR/UTPR tax return and Australian DMT tax return) Determination 2025 (draft LI 2025/D17).

The instrument sets out circumstances in which a group entity of an in-scope MNE group does not need to lodge the below tax returns for a fiscal year:

• an Australian IIR/UTPR Tax Return; and/or

• the Australian DMT Tax Return.

The draft LI does not exempt lodgment of either the:

• GloBE Information Return (GIR), where local lodgment is required; or

• the foreign lodgment notification, where a GIR is lodged in a foreign jurisdiction.

Feedback is being sought until September 24.