17 Sep 08 Senate's Family Trust Election amendments accepted by House - Bill awaits assentOn 17 September 2008, Tax Laws Amendment (2008 Measures No 4) Bill 2008 returned to the House of Representatives for consideration of the Senate's amendments.
The amendments, proposed by the Opposition and passed by the Senate, deleted Schedule 2 to the Bill. Schedule 2 contained the proposed changes to the family trust election provisions announced by the Government in the lead up to the last Federal election. These changes involved a change to the definition of "family" and removed the ability for family trusts to make a one-off variation to the test individual specified in a family trust election (other than specifically in relation to the 2007-08 income year or a marriage breakdown).
The acceptance by the Government of the Senate's amendments is welcomed by the Taxation Institute, which made a strong submission against the changes to the Senate Standing Committee on Economics, both in person before the Committee and in writing: see 2008 TAXVINE No32 (2) and (13) (15 August 2008).
The House resolved that the amendments be agreed to. Accordingly, the Bill (as amended) now awaits Royal Assent.