Australia: Senate Committee report on interest limitation / thin capitalisation rules bill
Senate Committee recommended amendments to legislation containing new interest limitation /thin capitalisation rules be agreed to and passed
The Senate Economics Legislation Committee has recommended the federal government’s amendments to legislation containing new interest limitation /thin capitalisation rules be agreed to and passed as amended, after it was asked to re-examine the legislation (Treasury Laws Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Bill 2023).
The bill proposes to:
- Require Australian public companies to disclose information about their subsidiaries in their annual financial reports by way of a “consolidated entity disclosure statement”
- Amend the thin capitalisation rules to limit the amount of debt deductions that multinational entities can claim in an income year
The government had previously referred the bill to the Committee on 22 June 2023, to which the Committee published its report on 22 September 2023.
Following consultation in October 2023 on further technical amendments to Schedule 2, the government’s amendments to the bill were put to the Senate.