29 May 14 Income tax relief for water reforms - ATO administrative treatment
On 14 December 2013, the then Assistant Treasurer announced that the measure entitled “Income tax relief for water reforms” would not proceed.
The government also announced its intention to provide protection for taxpayers who self-assessed on the basis of announced changes that will no longer proceed.
In the 2011-12 Federal Budget, the government announced income tax relief for water supply entities and their members, where state and territory government water reforms give rise to capital gains tax and balancing adjustment events.
The proposed changes were to be backdated to 1 July 2009.
The ATO has advised that it will accept tax returns as lodged during the period up until the day the protection measure is passed by Parliament. Assessments will not be reviewed until the outcome of the proposed amendment to provide legislative protection is known.
After the new law is enacted, taxpayers will need to review their positions.
Tax returns lodged after 14 December 2013, when the government announced the measure would not proceed, should be lodged on the basis of the law as it currently stands.
For more information go here.