*Basel III and Tier 2 capital instruments not to become ‘debt interests’ under Australian tax law on Australia adopting Basel III capital reforms – draft regulations released (25)

As part of the 2012-13 Budget, the Government announced it will ensure that Australia’s implementation of the Basel III capital reforms does not preclude certain Tier 2 regulatory capital instruments from being classified as a debt interest for the purposes of the income tax law.

The Government on Wed 31.10.2012, released for comment exposure draft regulations to amend the Income Tax Assessment Regulations 1997 to implement the Budget announcement. The draft regulations are proposed to apply from 1 January 2013.

COMMENTS are due by 14 November 2012.

[LTN 211, 31/10]