28 Nov 1111 Discussion Paper on reform to dividends payment test
In media release No 2011/057, issued 28 November 2011, the Parliamentary Secretary to the Treasurer, David Bradbury, announced the release of a discussion paper canvassing options for possible amendments to the dividends payment test and parent entity reporting requirements introduced into the Corporations Act 2001 in June 2010.
"The Government has responded to stakeholder feedback, particularly on the dividends payment test, and is exploring whether further refinement of the provision is needed. The discussion paper also examines whether reform is needed to clarify the interaction of the dividends test with the capital maintenance provisions and examines changes to how the dividends test applies to group companies," Mr Bradbury said.
The Commissioner has recently asserted that certain payments made in conformity with the dividend payments test are in fact distributions of capital and therefore unfrankable.
Submissions will close on 30 January 2012.