New thin capitalisation rules finalised
After first being released as exposure draft legislation in March 2023, the new thin capitalisation interest limitation rules have undergone several round of updates but are still not law.
Why business remains optimistic despite economic headwinds
Consumer sentiment remains in the doldrums, yet the latest feedback from the mid-market business community is that they remain broadly optimistic for the future. Newly updated ANZ-Roy Morgan consumer sentiment data shows 53% of respondents say their family is worse off now than they were 12 months ago, while just 8% are anticipating ‘good times’ […]
Foreign investment in residential land property and projects in Australia
A particular interest is Treasury’s quarterly data on the value of foreign investment in Australia which varies significantly when comparing approved commercial investments and approved residential real estate investments.
Managing redundancy: tactful transition and softening the blow
Redundancies are at an all time low, but hiring intentions are forecast to change. It’s important for HR manager to anticipate and manage emotions of staff tactfully. Providing clarity quickly is critical and allows for smooth transitions into new roles
How to create a strong Employee Value Proposition
Creating a strong Employee Value Proposition (EVP) should be a core focus for business leaders and owners. People aren’t as interested in climbing a ’career ladder’, instead opting to move around a ‘career lattice’ that offers a wide breadth of experiences. Building a strong EVP will start with understanding and listening to your people.
Using social recruitment to attract top talent and achieve your recruitment strategy
Key points Social recruitment involves strategically using your online and offline channels to attract more applicants for each role and have a better chance of attracting and retaining top talent. Candidates are more informed than ever due to the amount of information available online. Building a strong presence online requires ongoing commitment across your organisation, […]
What workplace flexibility means today and how to get the balance right
The pandemic supercharged flexibility in the workplace, so what now? People expect more flexibility from workplaces today, and companies that don’t have a formalised flexible workplace policy could miss out on attracting and retaining top talent. Companies should consider the flexible work solutions they can implement to address their people’s needs.
Legislation containing new thin capitalisation rules to have major impacts on financing arrangements
Legislation has been introduced into Parliament that significantly rewrites Australia’s thin capitalisation rules with effect from 1 July 2023, with no grandfathering or transitional relief.
Our Advocacy work: Thin capitalisation legislation
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).
New thin capitalisation legislation introduced into Parliament
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.