Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 2 : 19-Apr-16

The Australian Government is expected to make changes to thin capitalisation rules in order to curb multinational tax avoidance. The changes, to be announced in the May 2016 Budget, would reduce the amount of debt which multinational companies are allowed to take through their Australian operation from 60 per cent to 50 per cent. The reduction in the "safe harbour" debt-to-assets ratio could lead to accusations of discouraging foreign investment in Australia.

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