Australia alters tax code for capital-protected products
The Australian government has amended its tax treatment of capital-protected borrowings for all instruments entered into after May 13, in a move that may negatively affect the dynamics of the country's structured product market.
The new benchmark interest rate is now the Reserve Bank of Australia's (RBA's) indicator variable rate for standard housing loans, currently at 9.35%, rather than the RBA's indicator variable rate for personal unsecured loans, currently 14.55%.
"Interest expense on a
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