Australia’s new thin capitalization rules - Implications for real estate investment

Australia’s new thin capitalization rules are effective for income years commencing on or after 1 July 2023 and have the potential to significantly impact interest deductibility for real estate investments. Understanding the changes, modelling the impacts, and implementing appropriate restructuring options is crucial to supporting interest deductibility.
This Dbriefs AP webcast covers an overview on the new thin capitalization rules, and comparison with the previous rules, Third party debt test, Examples of common issues for inbound real estate investments and new debt deduction creation rules.
(Live Presentation was aired on 1 August 2024)
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