The Income Tax Assessment Amendment Regulation 2012 (No 2) was registered on the Federal Register of Legislative Instruments on Tue 11.12.2012. It amends the Income Tax Assessment Regulations 1997 to remove uncertainty concerning the tax treatment of certain hybrid capital instruments (ie capital instruments that have both debt and equity characteristics) as a result of Australia’s implementation of the Basel III capital reforms and insurance capital reforms. It provides that certain capital instruments that contain a non-viability clause are not precluded from being classified as debt interests for tax purposes.
The Regulation commences the day after it is registered ie on 12 December 2012.
[LTN 240, 11/12]