Frydenberg hails G20 corporate tax deal

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Australian Prime Minister Scott Morrison and other world leaders have endorsed an OECD deal on a 15 per cent global minimum corporate tax rate.

Treasurer Josh Frydenberg has welcomed the OECD Inclusive Framework on Base Erosion and Profit Shifting being formally adopted at the G20 summit in Rome.

The OECD nations are aiming to have the policy in force by as early as 2023.

Earlier in October, 136 OECD countries agreed on the proposal for multinationals to pay a minimum tax.

It would make it harder for global corporations such as Apple, Facebook, Google, Amazon and Microsoft to dodge tax by setting up shop in jurisdictions that have low or no tax.

"This will put a floor on the 'race to the bottom' on corporate tax rates and will support the domestic and global economy," Mr Frydenberg said in a statement on Sunday.

He said Australia had "played a key role" in driving the reforms, advancing the agenda when it hosted the 2014 G20 summit in Brisbane and as vice chair of the OECD Inclusive Framework Steering Group.

The federal government has implemented more than a dozen measures to address corporate and multinational tax avoidance, allowing the tax office to recoup more than $22.9 billion from multinational corporations and large public, privately-owned and wealthy groups.

"The Morrison government will continue to ensure that multinationals pay their fair share of tax in Australia and this global agreement represents a landmark step to that end," Mr Frydenberg said.

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