Australia, Germany sign off on tax treaty

Australia's finance minister and his German counterpart have locked in a new tax treaty, which replaces an agreement in place since 1972.

Australia's finance minister (pic) and his German counterpart have locked in a new tax treaty. (AAP)

Australia and Germany have put pen to paper on a new tax treaty, which will reduce impediments to increased trade between the countries.

Finance Minister Mathias Cormann and his counterpart Wolfgang Schauble signed the deal in Germany, which replaces the existing agreement in place since 1972.

The government says it will introduce legislation to ratify the new treaty as soon as practicable.