Taxation Issues

Commonwealth taxation law has undergone substantial review and reform since the commencement of the Ralph Review of Business Taxation (RBT) in 1998. While projects are taxed at the National, State and Local Government levels, (Commonwealth) income taxation is generally the most significant tax cost to the private parties involved in, or considering, large infrastructure projects under PPP arrangements. Accordingly, government officers seeking to establish the potential viability of a project, or involved with the evaluation of bids, require a sound working knowledge of relevant taxation provisions (or access to such knowledge).

Taxation considerations are important in PPP arrangements and should be subject to careful and expert analysis throughout the procurement process.  Given the complexity of most taxation issues applicable to PPP arrangements, both the procuring agency and bidders should be supported by professional tax advisors.

Further details on taxation issues are provided in the Practitioners' Guide.