From www.pitcher.com.au: From 1 July 2024, the Debt Deduction Creation Rules (DDCR) will permanently deny tax deductions for certain debt payments related to transactions with associates, specifically in asset acquisitions and funding distributions.

The rules apply broadly to entities subject to thin capitalisation, and they will not carry forward any denied deductions.

Affected taxpayers must analyze their financing arrangements as the lack of transitional provisions may lead to significant compliance challenges, including for historic transactions.