2023 Infrastructure

Part 1: Thin capitalisation reform – Choppy waters ahead for infrastructure financing

Published Date: 7 Jun 2023

 

The Federal Government’s announcement of proposed reforms to Australia’s thin capitalisation regime came with a sting in the tail for the infrastructure sector by combining the new 30 percent EBITDA test with a restriction on the use of the arm’s length debt test to ‘external debt’.

This session covers:

  • Why now?
  • The key features of the proposed 30 percent tax EBITDA test that is intended to replace the current safe harbour debt test
  • What is ‘external debt’ under the arm’s length debt test
  • Some case studies outlining the potential impact on common infrastructure financing structures; and
  • What to consider when restructuring gearing.

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2023 Infrastructure

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