Mr Bradbury also advised that the Government had received substantial feedback to its initial consultation paper on Div 6 of Pt III of the ITAA 1936 issued in November 2011. In response to the feedback, he said the Government will defer the proposed start date for the broader reform of trust income taxation from 1 July 2013 until 1 July 2014.
A policy design paper to “further develop options for a model for the taxation of trusts” is expected to be released in September 2012. The Assistant Treasurer said the paper “will tackle important issues like how character retention and streaming will operate and provide details that allow taxpayers and their advisers to determine how the possible reforms might apply to their particular circumstances”. “And the reforms will tackle key practical issues such as when beneficiaries’ entitlements need to be determined,” he said.
In addition, the Assistant Treasurer announced the deferred proposed start date to 1 July 2014 for the new tax system for managed investment trusts (MITs) to coincide with the general update and rewrite of the trust provisions.
In announcing the revised start date for the new tax system for MITs, the Government also announced extending the interim streaming rules for managed investment trusts, introduced in 2011, for a further 2 years to 1 July 2014.
Mr Bradbury has indicated that the Government intends to release exposure draft legislation affecting reforms to Div 6, fixed trusts and MITs in early 2013 with introduction of legislation in mid-2013. The Government also plans to host consultation roundtables before the introduction of legislation.
Source: Assistant Treasurer’s media release No 080, 30 July 2012; Assistant Treasurer’s speech to CPA Luncheon, Sydney, 30 July 2012
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