Depending on the degree to which Government (a tax-exempt entity) is deemed to have assumed commercial risk and control, Commonwealth taxation legislation may adversely affect PFPs. Tax risk is the responsibility of the private party, and Government will not assume or underwrite risk associated with the denial of tax deductions.
For those tax risks that can threaten the viability of a project, agencies may require the private party to obtain a binding ruling from the Australian Taxation Office as a condition precedent to the contract becoming effective.