Australian Federal Budget 2013/14
The Australian 2013 – 2014 Federal Budget, released on May 14, 2013, contains a number of measures aimed at increasing the Australian tax revenue, including a number of changes in particular relevant for in-and out-bound investors in Australia. Most notably, the Budget proposes to amend the Australian thin capitalisation rules by reducing the safe-harbour debt amount from 75% to 60% of adjusted Australian assets. The Budget further contains proposals to limit the deductibility of debt in Australia raised for foreign investments and proposes to remove the existing participation exemption for dividends received from foreign companies on shares which for Australian tax purposes qualify as debt interests under the Australian debt/equity rules.
Read more about this in our ITSNewsalert.
If you would like to discuss any of the issues raised, please get in touch with your usual PwC contact.