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Exposure Draft - Changes to the Taxation of Capital Protected Borrowings


Tuesday, 11 May 2010

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On 11 May 2010, the Assistant Treasurer released exposure draft legislation on the taxation of capital protected borrowings for consultation on the technical aspects of the amendments. The exposure draft legislation gives effect to the announced changes to the taxation of capital protected borrowings.

The benchmark interest rate that applies to capital protected borrowings entered into after 7:30pm (AEST) on 13 May 2008 will be adjusted to the Reserve Bank of Australia’s Indicator Rate for Standard Variable Housing Loans plus 100 basis points. The transitional arrangements for capital protected borrowings entered into at or before 7:30pm (AEST) on 13 May 2008 will be extended to 30 June 2013 to reduce compliance costs for affected taxpayers in the 2012-13 income year.

Making a submission

Interested parties are invited to comment on the paper. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Friday, 11 June 2010

Address written submissions to:
Finance Taxation Unit
Business Tax Division
The Treasury
Langton Crescent

Email: capitalprotectedborrowings@treasury.gov.au

For enquiries, please call Nan Wang (02) 6263 2768.

Documents Available:

Acrobat (PDF) documents

 Acrobat (PDF)

Exposure Draft  28.99kb
Explanatory Memorandum  51.14kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Exposure Draft  112.83kb
Explanatory Memorandum  251.01kb

Related Items:

Submissions: Exposure Draft - Changes to the Taxation of Capital Protected Borrowings - 25/11/2010

Treasury received two submissions in response to the exposure draft on the changes to the taxation of Capital Protected Borrowings. All of the submissions are public and are accessible by selecting the author.

The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury.

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