All levels of government remain focused on the infrastructure sector and the delivery of major projects as a driver of increased productivity and economic growth. As part of the 2014-15 Budget, the Federal Government announced the Asset Recycling Initiative designed to encourage the States and Territories to privatise assets and use the proceeds to invest in new significant infrastructure projects.
Although there remains a long list of significant projects, in the current economic environment governments need to prioritise which projects to proceed with and give close attention to the value proposition on such projects. Likewise, the private sector needs to be innovative in demonstrating how value can be delivered.
Our tax team has advised both the public and private sector on some of the largest infrastructure projects undertaken in Australia over recent years, including the Gold Coast Rapid Transit Project, Victorian Desalination Project, Mundaring Waste Treatment Plant, Airport Link and the Queensland, Victorian and South Australian Schools PPPs. Whether acting for clients bidding for a project or acting for government evaluating those bids, the tax efficiency of a project structure will be a critical part of the value proposition. Corrs has developed and evaluated common structures for implementing PPP projects such as stapled, securitised and prepaid structures and variations to them. Corrs’ experience gives us a unique insight into those structures and a thorough understanding of the government’s approach to tax risk.
By appointing Corrs as tax adviser to a project, our clients have benefitted from seamless integration with the broader Corrs major projects team, ensuring that our advice covers all relevant legal issues including tax and the delivery of timely responses regarding the tax implications of developments as a project progresses.
Corrs involvement on the tax committees of Infrastructure Partnership Australia and the Law Council of Australia ensure that we contribute to the tax policy debates impacting the infrastructure sector and structures commonly adopted for implementing infrastructure projects.