10 Nov 08 Reforms to Income Tests - 2008-09 Budget MeasuresIn the 2008-09 Budget, the Government announced four measures to reform income tests across the tax and transfer systems (see Treasurer's Media Release No 046 and Media Release No 047 of 13 May 2008): see 2008 TAXVINE No18 (13 May 2008).
In summary, these measures will include particular salary sacrificed contributions to superannuation in income tests for relevant tax and transfer system programs. Net financial investment losses and net rental property losses where appropriate, will be added to applicable income tests. Further, adjusted fringe benefits will be assessed as income for those tax programs where they are not already included and the income tests for the dependency tax offsets will also be amended.
Treasury has now released a Discussion Paper and a draft Exposure Bill. Comments are sought on the draft. The closing date for comments is close of business Friday 5 December 2008.
For a copy of the Discussion Paper and a draft Exposure Bill, go here.