The government secured the passage of the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill last week, which ministers said will “attack the heart of multinational tax avoidance” while ensuring the country remains an “attractive and competitive place” to do business.

The law will also increase transparency by requiring all multinationals operating in Australia with global revenues above $1bn to submit country-by-country reports on their operations, and to adhere to new OECD transfer pricing guidelines under recommendations finalised by the think-tank in October.

The reforms come during a worldwide clampdown on tax avoidance from multinational companies. The European Parliament also recently voted to adopt measures to prevent transnational corporations from dodging their tax.