In a media release issued on 2 September 2009, the Assistant Treasurer, Senator Nick Sherry, announced the release for public comment of draft legislation for the abolition of what is known as the CGT "trust cloning exception". The Government announced in late 2008 that it would remove this exception with effect from 1 November 2008.
While removing the trust cloning exception, the draft legislation contains an important new provision that will allow for a limited CGT roll?over for the transfer of assets between fixed trusts.
"The legislation delivers a balanced package that boosts integrity but still allows eligible trusts to restructure businesses or investment funds when they need to without immediate capital gains tax consequences," the Assistant Treasurer said.
The closing date for submissions is Wednesday 30 September 2009.
For a copy of the Assistant Treasurer's media release, No 2009/040, 2 September 2009, go here
For a copy of the Exposure Draft and Explanatory Memorandum, go here