Further to our news release earlier in March this year drawing clients’ attention to the Government’s release of a package of policy measures intended to address taxation bias towards foreign investors under certain stapled structures, Treasury has today released the next instalment of the package outlining the proposed conditions stapled entities must comply with to access the infrastructure concession and/or transitional arrangements.
The conditions include:
The proposal paper provides some useful practical examples of how the new rules apply, along with a checklist setting out the steps for determining excess rent under the cross-staple rent cap principle.
The time line for consultation is particularly short given the closing date of 12 July, 2018, so Treasury has indicated that the preferred medium for submissions is electronic lodgement.
Just a reminder to clients or third parties intending to make a submission that legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
The proposal paper can be accessed here.