Australia proposes thin capitalisation changes
December 18, 2009
The Australian government has released for public consultation draft legislation on proposed changes to the country’s thin capitalisation rules.
The legislation, which will be open for consultation until January 15 2010, highlights a number of areas of the rules that need to be addressed.
The proposed changes were first announced in the country’s 2009/2010 budget after it was felt the rules needed to be changed following the introduction of international financial reporting standards on the thin capitalisation position of authorised deposit taking institutions (ADIs) in 2005.
The changes will clarify how treasury shares, the business insurance assets and capitalised software costs will be treated under the thin capitalisation provisions.
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