Treasury Laws Amendment (Making Multinationals Pay Their Fair Share - Integrity and Transparency) Act 2024 (23 of 2024)

Schedule 2   Thin capitalisation

Part 1   Amendments

Income Tax Assessment Act 1997

11   Section 820-1

Omit:

Financing expenses that an entity can otherwise deduct from its assessable income may be disallowed under this Division in the following circumstances:

• for an entity that is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (an ADI ) - the entity's debt exceeds the prescribed level (and the entity is therefore "thinly capitalised");

• for an entity that is an ADI - the entity's capital is less than the prescribed level (and the entity is therefore "thinly capitalised").

substitute:

Financing expenses that an entity can otherwise deduct from its assessable income may be disallowed under this Division where the entity is "thinly capitalised".