The ATO responded to practitioners' concerns about the withdrawal of TR 95/29 (Div.16 - applicability of averaging provisions to beneficiaries of trust estates carrying on a business of primary production) following the Bamford decision. The ATO stated that they had to withdraw the ruling based on the propositions set out in Bamford. Rather than withdrawing the decision from 30 March 2010 (the date of the High Court judgment), the ATO left the ruling on foot to 30 June 2010 so that taxpayers would only be affected in the 2011 income year. The ATO indicated that they have brought the matter to the attention of Treasury. In this regard, the Taxation Institute has continued to urge the government for trust reform, as this is yet another instance of the impact of the Bamford decision.
In response to member feedback, the Taxation Institute alerted the ATO to the need for fact sheets addressing the impact of public transactions on shareholders (e.g. takeovers, buy-backs etc). In recent years, the number of fact sheets seems to have declined and this is disappointing for busy practitioners. The ATO undertook to publish a "Key events for Australian shareholders" guide for 2010-11 to make it easier for practitioners to find this valuable information.