To answer the first part of your question, the situation in Australia bears many comparisons to Canada on a lot of different fronts, including taxation. Historically, Australia and Canada have operated very similar systems. Indeed, many aspects of the Australian system were patterned on Canada's system.
But over the last 20 or 25 years, the Australians have been quite venturesome in working out how to deal with the kinds of challenges Canada is now faced with. They too have faced those same challenges, as every developed country does. They've moved through different approaches and they've ended up, for the time being, with a very different approach from anything that's currently under contemplation in Canada.
I must interject that I'm by no means an expert on the Australian tax system, so this reflects my understanding of it. But the Australian approach is to apply a limit on deductibility generally with respect not only to foreign investment, but also domestic investment, and to say a limited amount of debt can be used in the financing of a business's subsidiaries, for example, and representing debt in excess of that ceiling is not deductible.
We have a limited form of this rule with respect to inbound investment, in what we refer to as our “thin cap” or thin capitalization rules. But Australia and one or two other countries have taken this concept further and applied it across the board, domestically and foreign, inbound and outbound.