As Government enterprises became more reliant on private sector investment throughout the 1990s more of the economy became involved and it became clear to all that section 51AD and its counterpart Division 16D were both too pervasive and too draconian in their effect. Expansion of Australian enterprises offshore was also being inhibited. Something had to be done ... and ultimately it has been.
Division 250 is a more economically palatable replacement for section 51AD and Division 16D, and it is now law. It transforms the landscape for investment and participation in community and offshore infrastructure and servicing.
- What are the opportunities? What's in? What's out? Can/should existing projects be recast to take advantage of the transitional rules?
- Control - new levers or same old?
- Predominant economic interest testing - when are you still just a financier?