Abstract
Infrastructure in Australia is under strain from two influences. First, the existing limited infrastructure is unable to keep pace with economic growth and, secondly, the demand for health and welfare infrastructure because of an ageing population. Yet, there are no special rules for the taxation of infrastructure in Australian taxation law, except in very limited circumstances. However, taxation impacts on infrastructure in two important ways. First, accessing the early stage tax losses in infrastructure projects and, secondly, the number of anti tax avoidance rules that it has attracted
This paper proceeds by discussing the general tax rules that apply to typical infrastructure project financing such as leasing, managing pre-completion losses and transferring depreciation deductions to financiers. Next is a discussion of the two Government initiatives that have offered investors early access to tax losses from interest and capital allowance deductions and the methods now used by investors to obtain those losses. It also asks the question whether there is a need for new incentives to be reintroduced. Finally, the paper considers the anti tax avoidance rules that have grown up around some of the unique aspects of infrastructure financing.
Disciplines
Tax Law
Date of this Version
May 2008
Recommended Citation
Gordon MacKenzie, "Infrastructure Taxation in Australia: Accessing losses and avoidances" (May 2008). University of New South Wales Faculty of Law Research Series 2008. Working Paper 30.
http://law.bepress.com/unswwps-flrps08/art30
Comments
This paper appeared in the Journal of Law and Financial Management Vol6 No2 pp22-31 December 2007. This paper may also be referenced as [2008] UNSWLRS 30.