The Government Tue 23.9.2014 released draft legislation to give effect to minor amendments to the operation of the CGT provisions in the ITAA 1997.
In particular, the proposed changes seek to ensure a CGT exemption is available to trustees and beneficiaries who receive compensation or damages for certain insurance policies. It is intended that trustees or beneficiaries not be subject to CGT when they receive compensation or damages in respect of certain events (such as an injury an individual suffers at work) or under certain policies of insurance (such as illness, injury or death).
The amendments would also ensure that the CGT exemption available to a trustee of a superannuation entity covers insurance policies related to injuries or illness.
This measure was one of the 92 announced but unenacted tax and superannuation measures that the Assistant Treasurer announced on 14 December 2013 would proceed.
COMMENTS are due by 21 October 2014
[LTN 184, 23/9/14]