In June 2023, legislation containing new thin capitalisation rules from 1 July 2023 was introduced into Parliament. Broadly, thin capitalisation applies to entities part of multinational groups that incur debt deductions (e.g. interest) of more than $2 million for an income year (on a group basis).
Last month, legislation was introduced to Parliament that significantly rewrites Australia’s thin capitalisation rules with effect from 1 July 2023, with no grandfathering or transitional rules. The new regime will replace the current asset-based test with an earnings based test that limits net debt deductions to 30% of tax EBITDA.
Mid-market businesses are racing to adopt generative AI tools, even if their enthusiasm is outpacing their awareness of challenges and risks, according to the latest Business Radar Report from Pitcher Partners. One in three business leaders in the new survey of mid-market firms reported already integrating a generative AI tool into their operations, while a […]
Juliana provides tax advisory and compliance services to listed investment companies, large privately owned companies and managed investment trusts (MITs). Her experience extends across a range of industries including financial services, technology, property and mining. Recognising the importance of having a supportive network throughout a career journey, Juliana has been a mentor and source of […]
Robert is an expert in advisory for the pharmacy sector. He is passionate about guiding pharmacists through the process of purchasing their pharmacy, being a successful pharmacy owner and achieving their short and long-term goals. Throughout his career, which spans over 15 years, Robert has developed expertise in working with community pharmacists to help them […]
A highly regarded professional, Lisa has an impressive career spanning more than 20 years. During her tenure with Pitcher Partners’ Adelaide firm, she has gained significant experience providing accounting and compliance services and advice, including business structuring, tax planning, finance applications, business structuring and general taxation advice and strategies to a diverse range of clients. […]
Employee share schemes can be a powerful tool for businesses looking to motivate and retain their staff. By giving employees the opportunity to own a stake in the company, businesses can align their interests with those of their workers and encourage them to work towards the company’s success. In this article, we’ll take a look at how to set up an employee share scheme discount sale in your business. We’ll cover the benefits of offering such a scheme, the different types of schemes available, and how to structure the scheme for maximum success. Whether you’re a small business owner or a large corporation, an employee share scheme could be a valuable addition to your remuneration package, so let’s get started.
Recent court cases and ATO guidance products present additional challenges for trustees when considering how to distribute trust income.
In March 2023, Treasury released an exposure draft legislation for public comment on the new thin capitalisation rules. We made a comprehensive submission in response to the exposure draft legislation.
The Government will implement new thin capitalisation rules that will operate from 1 July 2023. The proposed new rules will apply to deny interest deductions for taxpayers with foreign shareholders, or foreign operations, or that are part of multinational groups.
Thank you for you interest