Changes toAustralian tax rules since 2019 have eroded some of the benefits of a stapledstructure and similarly, more recent changes to US tax rules on interestdeductability have limited the efficiency of a stapled structure.
In addition to the reduced efficiency of astapled structure, NEW has advice that the trading activity of NEW on the ASXis sufficient for NEW to qualify as a “regularly traded” security which wouldallow NEW to access the US/Australian Double Tax Treaty benefits that willfacilitate tax efficient distributions from the US without the necessity of astapled structure
Some of the few earlier posters here complained of the opaque nature of NEW's accounts. I said at the time that this was a requirement of the ASX. First and foremost the stapled structure of infrastructure and property IPOs was tax driven........to get them off the ground and allow the entity to pay distributions from capital and attract foreign pension funds.
Since 2019 changes in Aust tax has eroded these benefits.
If this proposal gets the green light the Responsible Entity fades into the evening. All the juicy fees are history
