Property 101: Asset backed financing – Islamic investment
Jonathan ChancellorFebruary 6, 2021
GUEST OBSERVER
The Federal Government in its Budget pledged to "enhance access to asset backed financing" by removing key barriers to the use of asset backed financing arrangements imposed by Australia's current tax laws.
While the announcement was not made with much fanfare, it may prove to be one of the most significant tax changes in the Budget.
It is anticipated that the announcement may open the door to Islamic financing in Australia, thereby allowing Australian borrowers to access a new financial market to fund real estate and infrastructure projects.
This tax measure will apply from July 1, 2018.
John Moutsopoulos is partner, Norton Rose Fulbright Australia and can be contacted here.
Jonathan Chancellor
Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.