Thin capitalisation changes: Impact for Real Assets

Exposure draft legislation has been released in relation to the proposed changes to the Australian thin capitalisation regime, previously announced in October 2022 as part of Australian Federal Budget.

The Exposure Draft legislation for the proposed new thin capitalisation legislation has significant implications for investors in the Real Assets sector, particularly those utilising flow through Unit Trust investment structures. From an overall perspective, as the rules are currently drafted the outcomes for these projects and their investors have the potential to be less favourable than for corporate groups investing through a tax consolidated group. The current consultation period will be...

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Authors: Scott Farrell, Matt Ervin,

Published Date: 23 March 2023