The AASB has approved Australian Accounting Standard AASB 2012-9 to withdraw Australian Interpretation 1039 Substantive Enactment of Major Tax Bills in Australia for annual reporting periods beginning on or after 1 January 2013, with early application permitted.

The AASB has also issued an Agenda Decision addressing the issue of when it would be appropriate to conclude that substantive enactment of major tax Bills has occurred in Australia. In considering that issue, the Board noted that, under AASB 112 Income Taxes, substantive enactment is determined by the legal framework of a jurisdiction, and that substantive enactment would not occur until any significant uncertainty about the outcome of a tax Bill has been removed. The Board noted that, in Australia, it would be rare that such uncertainty would be removed before a non-linked tax Bill has passed through both Houses of Parliament. However, it would also be rare for significant uncertainty to remain after a non-linked tax Bill has passed through both Houses of Parliament, even though passing is followed by actual enactment, being the Bill receiving Royal Assent.

[LTN 247, 20/12]