Published on 01 Jun 21
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The securitisation industry is dynamic, ever-changing and an important tool used to finance loan origination in Australia. However, what is often less understood are the mechanics of how securitisation transactions are implemented in practice and their Australian legal and tax consequences. The purpose of this article is to “unpack” this, to set out what securitisation is and why such transactions are entered into by the relevant parties. It provides a broad overview of a typical residential mortgage-backed securitisation transaction and outlines the key Australian legal and income tax considerations that parties may need to have regard to.