In the 2011-12 Federal Budget, the Government announced that it would amend the ITAA 1997 to remove access to the trading stock exception to the CGT primary code rule for certain assets (primarily shares, units in a trust and land) owned by a complying superannuation entity. The Government today [Fri 13.1.2012] released draft legislation and an explanatory memorandum for public consultation on this proposal.
Under the proposed changes:
Complying superannuation entities would not be able to account for gains and losses on certain assets (primarily shares, units in a unit trust and land) on revenue account using the trading stock exception.
Life insurance companies would not be able to account for gains and losses on certain complying superannuation/FHSA assets (primarily shares, units in a unit trust and land) on revenue account using the trading stock exception.
DATE OF EFFECT: The amendments would apply from 7:30pm (AEST) on 10 May 2011.
COMMENTS are due by 10 February 2012.
[LTN 8, 13/1]