31 Jul 1212 Trusts: fixed trusts discussion paper and revised consultation timetable released
In media release No 2012/080, issued 30 July 2012, the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, announced the release of a discussion paper which invites stakeholder views on options for a more workable approach for fixed trusts.
The discussion paper considers a number of options for reform, including modifying or replacing the existing definition of "fixed trust".
Submissions close on Friday 14 September 2012.
Mr Bradbury said that the Government is also progressing the broader trust reform agenda to modernise the taxation of trust income. Following feedback from stakeholders, the Government will also be amending the proposed start date for the broader reform of trust income taxation from 1 July 2013 until 1 July 2014.
The Government will release a policy design paper in September 2012 which will further develop options for a model for the taxation of trusts.
The new tax system for managed investment trusts will now also have a start date of 1 July 2014, to coincide with the general update and rewrite of the trust provisions.
In announcing this revised start date for the new tax system for managed investment trusts, the Government will also extend the interim streaming rules for managed investment trusts, introduced in 2011, for a further two years to 1 July 2014.
Included in the media release is a revised consultation timetable for the proposed trust reforms.
On the same day (30 July 2012), Mr Bradbury gave an address entitled "The Government's Taxation Reform Agenda for Trusts" to a CPA Australia luncheon held in Sydney, New South Wales.