13 May 10 2010 Measures No 1 Bill awaits Royal Assent
On 12 May 2010, Tax Laws Amendment (2010 Measures No 1) Bill 2010 was passed by the Senate with 18 Government amendments.
The Bill amends 8 Acts in relation to approved superannuation clearing houses; forestry managed investment schemes; managed investment trusts; eligibility criteria for the entrepreneurs’ tax offset; and the corporate consolidation regime; and amends 13 Acts to make miscellaneous and technical amendments.
Amendments 1 to 7 amend Schedule 3 to the Bill, including some technical corrections.
Certain provisions dealing with trusts that are to be treated in the same way as a managed investment trust (MIT) will be removed. As a consequence of these amendments a "closely held" test in relation to trusts that are treated in the same way as a MIT will no longer be required. Therefore, the closely held trust provision in Schedule 3 will also be removed.
It is proposed that trusts, that would have been treated in the same way as a MIT under the removed provisions, will be covered by proposed changes to the general definition of "managed investment trust" in Subdivision 12-H of Schedule 1 to the Taxation Administration Act 1953, to be introduced into Parliament at a later date.
The changes made by Amendments 2, 3, 5, 6 and 7 will apply from the 2008-09 income year. Amendments 1 and 4 simply remove provisions from Schedule 3 to Bill.
Amendments 8 to 18 amend various Parts of Schedule 5 to the Bill, which amends the consolidation regime. The amendments:
- clarify the treatment of the tax cost setting amount allocated to assets that are rights to future income in Part 1;
- ensure that the amendments in Part 16, which make it easier for widely held companies to satisfy the loss multiplication rules, apply appropriately to foreign owned consolidated groups;
- alleviate concerns that the amendments in Part 18, which relates to consolidation choices, could have an adverse retrospective impact on taxpayers in some very limited circumstances; and
- make some technical corrections.
On the same day, the House of Representatives, after consideration, agreed with the amendments made by the Senate.
Accordingly, the Bill now awaits Royal Assent.
The Assistant Treasurer commented on the passage of the bills in the following media releases:
- No 2010/102, 13 May 2010 "New Tax Certainty for Managed Investment Trusts as Legislation Passes Parliament"
- No 2010/103, 13 May 2010 "Australia's Corporate Tax Consolidation Regime Enhanced By Passage of New Laws"
- No 2010/104, 13 May 2010 "Parliament Approves Rudd Government's Tax Protection Package for Investors in Forestry Managed Investment Schemes"
In a joint Media Release No 2010/051, 13 May 2010, the Minister for Small Business, Craig Emerson, and the Minister for Superannuation, Chris Bowen, welcomed the passage of the Bill and, in particular, the passage of the Government's Small Business Superannuation Clearing House measure. The Medicare Australia super clearing house will provide a free and reliable service for eligible small businesses (those with under 20 employees) to discharge their superannuation obligations.
For a copy of the Supplementary Explanatory Memorandum explaining the amendments, go here