31 Mar 11 Board of Taxation to review the consolidation rights to future income rules
In media release No 2011/045, issued 30 March 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced that the Board of Taxation (the Board) has been asked to review the rights to future income rules and modify the residual tax cost setting rules.
The Assistant Treasurer said that uncertainty around the operation of the rules (introduced or modified last year) had prompted the review. In particular, tax deductibility may be argued for types of assets that were not contemplated when the rules were introduced. This could result in the rules having a substantially greater revenue impact than anticipated.
The Board will report to the Assistant Treasurer by 31 May 2011, before completing its post-implementation review of aspects of the consolidation regime. As part of the review, the Board will consider whether, given the amendments that were made last year applied from 1 July 2002, any changes to the rights to future income and residual tax cost setting rules arising from the review should also apply from that date
The Terms of Reference for the Board's review are attached to the Assistant Treasurer's media release.