21 May 1212 Board of Taxation to conduct a post-implementation review of Division 7A
In media release No 2012/033, issued 18 May 2012, the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, announced that the Government has tasked the Board of Taxation with undertaking a post-implementation review of Division 7A of Part III of ITAA 1936.
Last year's Tax Forum raised Division 7A as a particularly thorny issue for small business - especially for users of trusts that need working capital to reinvest in their business. This post-implementation review will examine whether there are options to simplify this complex area of the law, while still ensuring the integrity and fairness of the tax system.
The Board will conduct the review in line with the terms of reference attached to the media release and provide the Government with a final report by 30 June 2013.