Australian Debt Deduction Rules Inhibit Investment, Advisers Say

Tax pros say a new test meant to fix a clash between Australia’s tax rules and the realities of financing real estate and infrastructure development is too narrow and may hamper investment.

They said the test is still too restrictive and wouldn’t resolve the shortage of housing and infrastructure in the country.

Australia’s tax authority said the test’s new design reflects that the previous rules “may not work appropriately for asset-heavy sectors with long depreciation periods, such as the infrastructure and property sectors.”

“The measures discourage multinational companies from operating in or expanding their operations in Australia, where ...