17 Jul 12 Debt Equity Rules - Treatment of Tier 2 Capital Instruments under Basel III capital Reforms
In the 2012-13 Budget, the Government announced that it will amend the income tax legislation in light of the Australian Prudential Regulation Authority’s adoption of the Basel III capital reforms. It will ensure that on commencement of the Basel III capital reforms on 1 January 2013, certain capital instruments issued by authorised deposit taking institutions will not be precluded from being treated as debt for income tax purposes.
Treasury has now released a discussion paper in relation to the proposed amendment.
The closing date for submissions is Friday 10 August 2012.