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Infrastructure - The new opportunities and the new pitfalls

Published on 17 Oct 2007 | Took place at RACV Club, Melbourne , VIC

As Government enterprises became more reliant on private sector investment throughout the 1990s more of the economy became involved and it became clear to all that section 51AD and its counterpart Division 16D were both too pervasive and too draconian in their effect. Expansion of Australian enterprises offshore was also being inhibited. Something had to be done … and ultimately it has been.

Division 250 is a more economically palatable replacement for section 51AD and Division 16D, and it is now law. It transforms the landscape for investment and participation in community and offshore infrastructure and servicing.

- What are the opportunities? What’s in? What’s out? Can/should existing projects be recast to take advantage of the transitional rules?
- Control - new levers or same old?
- Predominant economic interest testing - when are you still just a financier?

Individual sessions

Tax preferred asset financing and Division 250

Author(s):  Steve FORD

Better understand issues of vital importance for structuring asset acquisitions and project financing for medium to large enterprises and tax exempt and non-resident entities. This paper covers:

  • an outline of new Division 250
    • how it works
    • what transactions are covered? what’s in and what’s out? exclusions
    • demonstrating predominant economic interest
    • calculation of notional interest income
  • a worked example applying the new provisions
  • transitional provisions and the repeal of Section 51AD and Division 16D.
This paper was also presented at 'Division 250: Impact for Property and Infrastructure Projects' held in Sydney on 16 October 2007 and at 'Infrastructure - the new opportunities and the new pitfalls' held in Melbourne on 17 October 2007.
Materials from this session: