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On 30 October 2014, Tax and Superannuation Laws Amendment (2014 Measures No 6) Bill 2014 was introduced into the House of Representatives.

The following is extracted from the Explanatory Memorandum.

SCHEDULE 1 to the Bill amends the ITAA 1997 to extend the existing business restructure roll overs available where a member of a company or unitholder in a unit trust can defer the income tax consequences of transactions that occur in the course of a business restructure. 

In particular, the amendments permit taxpayers to apply the roll overs in circumstances where they held the relevant shares or units as revenue assets or trading stock. The amendments also consolidate the separate but effectively identical business restructure roll overs for shares and units in a unit trust into a single set of provisions.

The amendments also make a number of technical changes to provisions of the ITAA 1997 to:

  • allow roll overs for trusts transferring all their assets to a trust or company to apply where the new trust or company holds rights needed to facilitate the transfer;
  • address a technical defect in the operation of the business restructure roll overs in relation to revenue assets; and
  • clarify that the business restructure roll overs only apply where the new asset has the same character (as a revenue asset or trading stock) as the original asset.

The amendments extending the business restructure roll overs in relation to revenue assets and trading stock have effect from:

  • 7.30 pm on 8 May 2012 (by legal time in the Australian Capital Territory) for shares; and
  • 7.30 pm on 10 May 2011 for unitholders in a unit trust who exchange their units for shares in a company.

The amendments relating to roll overs where trusts transfer assets apply to transfers:

  • after 1 November 2008 for transfers between trusts; and
  • from 7.30 pm on 10 May 2011 for transfers from trusts to companies.

The technical amendment to the provisions in the business restructure roll over for revenue assets applies from 7.30 pm on 8 May 2012.

Finally, the amendments introducing the same character rules for assets acquired in a business restructure apply from 7.30 pm on 8 May 2012.

SCHEDULE 2 to the Bill ensures that foreign pension funds can access the managed investment trust (MIT) withholding tax regime and the associated lower rate of withholding tax on income from certain Australian investments. This measure applies to income years commencing on or after 1 July 2008 ratifying current industry practice. 

SCHEDULE 3 to the Bill provides an exemption from Australian tax on income derived by certain entities engaged by the Government of the United States of America (US) in connection with Force Posture Initiatives in Australia. The exemption will apply in relation to the 2014-15 income year and later income years.

SCHEDULES 4 and 5 to the Bill amend the Fuel Tax Act 2006 and the Energy Grants (Cleaner Fuels) Scheme Regulations 2004.

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