Federal Budget: Taxation of asset-backed finance to be adjusted
In a move aimed at encouraging investment, asset-backed financing will be given the same tax treatment as conventional financing under changes to be introduced in July 2018.The federal budget papers refer to asset-backed financing as finance relying on "the trading of assets, sharing of profits or leasing to finance an investment, rather than interest repayments."Such arrangements will be given the same tax treatment as financing arrangements based on interest bearing loans.