In the 2012-13 Budget, the Government announced that it would amend the income tax legislation in light of APRA’s adoption of the Basel III capital reforms. It would ensure that on commencement of the Basel III capital reforms on 1 January 2013, certain capital instruments issued by authorised deposit-taking institutions would not be precluded from being treated as debt for income tax purposes. Treasury has now released a discussion paper seeking comments on the design of the proposal.
The discussion paper is available on the Treasury website.
COMMENTS are due by 10 August 2012.
[LTN 136, 17/7]