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Press Release No.3 1997 - Infrastructure Borrowings Taxation Concession

Date:

Friday, 14 February 1997

Content ID:

144

Abstract:

The Infrastructure Borrowing taxation concession was originally announced in the 1992 One Nation Statement. In 1994, further amendments to the scheme were announced as part of the Working Nation Statement.

Under the Infrastructure Borrowing legislation, interest paid on infrastructure bonds is tax exempt in the hand of the lender and not tax deductible in the hands of the borrower. The intention of the scheme was for lenders to pass back the benefit of tax exempt interest in the form of lower lending rates.

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