Developers face uncertainty on thin capitalisation rules

Developers may have to form joint ventures and put in more equity to get projects off the ground if planned so-called thin capitalisation legislation to curb excessive tax deductions by companies goes ahead without modification, tax advisers warn.

The Property Council of Australia has already warned that the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Bill 2023 puts the development of 150,000 build-to-rent homes over the next decade at risk.