Last week saw the passage of the Government’s long foreshadowed Thin Capitalisation Bill.
And talk about a shadow.
Up against the bright sun of the government’s national housing targets this darkens the investment landscape.
We continue to support the integrity aims of the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023 as announced.
The legislation that passed the Senate last week has a very different practical effect.
It will shrink the government’s 1.2 million homes target at a time when the nation can least afford it.
The low point is that an Australian business, investing in Australia with only Australian assets and debt, can now be caught in profit shifting prevention laws where there is no offshore jurisdiction to shift profit to.
What remains is a poorly targeted tax-grab that blunts overseas and domestic investment in city building assets, and especially housing, across the country.
Australia has long relied on overseas investment to build the best parts of our cities.
We will continue to demonstrate the negative impacts of the legislation in order to fix its flaws and champion future investment.
Next week – We need to talk about Victoria.