Multinational tax avoidance plan extended

The federal government wants to block multinational companies using trusts and partnerships to escape paying tax in Australia.

Assistant to the Treasurer Michael Sukkar introduced legislation to parliament on Wednesday that would bring artificial or contrived arrangements involving trusts and partnerships under the multinational tax avoidance laws introduced in 2016.

"This measure will ensure that multinationals pay the right amount of tax on their Australian income," he said.

Financial Services Minister Kelly O'Dwyer also introduced a bill to stop companies using multilateral tax treaties to avoid paying tax.

Among the changes, Ms O'Dwyer said it would prevent companies from fragmenting entities or splitting contracts to avoid having a permanent taxable presence in Australia, or another treaty partner.