Inquiry into the Provisions of the Tax Laws Amendment (2007 Measures No.4) Bill 2007 & Taxation (Trustee Beneficiary Non-disclosure Tax) Bill (No.1) 2007 & Taxation (Trustee Beneficiary Non-disclosure Tax) bill (No.2) 2007
Information about the Inquiry
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The Senate Standing Committee on Economics is conducting an inquiry into the provisions of the Tax Laws Amendment (2007 Measures No. 4) Bill 2007, and two complementary Bills; the Taxation (Trustee Beneficiary Non-Disclosure Tax) Bill (No. 1) 2007, and the Taxation (Trustee Beneficiary Non- Disclosure Tax) Bill (No. 2) 2007.
The Tax Laws Amendment (2007 Measures No. 4) Bill 2007 is an omnibus bill containing 8 Schedules. The two other bills provide amendments to complement the proposed changes in Schedule 4 by providing mechanisms to introduce a 46.5% non-disclosure tax on certain income. The Schedules are summarised below.
- Schedule 1 amends the income tax law to abolish foreign loss and foreign tax credit quarantining and to streamline the remaining foreign tax credit rules. These amendments include transitional rules for the treatment of existing quarantined foreign losses and credits.
- Schedule 2 amends the Income Tax Assessment Act 1997 to provide a capital gains tax roll-over for membership interests in medical defence organisations.
- Schedule 3 amends the borrowing restriction contained in the Superannuation Industry (Supervision) Act 1993 to allow superannuation funds to invest in instalment warrants of a limited recourse nature over any asset a fund would be permitted to invest in directly.
- Schedule 4 amends the Income Tax Assessment Act 1936 so that trustees of closely held trusts are not required to report to the Commissioner of Taxation (the details of the ultimate beneficiaries of trust income.
- Schedule 5 amends various Acts to assist in the smooth transition to the Simplified Superannuation regime. This Schedule limits strategies which could circumvent the minimum drawdown requirements for account-based pensions, facilitates the provision of tax file numbers to superannuation and retirement savings account providers, and revises the application provision for small business capital gains tax relief.
- Schedule 6 amends the Income Tax Assessment Act 1997 to update the list of deductible gift recipients.
- Schedule 7 makes technical corrections and other minor amendments to the taxation laws.
- Schedule 8 amends the trust loss regime in the Income Tax Assessment Act 1936 to allow family trust elections and interposed entity elections to be revoked or varied in certain limited circumstances.
The committee is to report to the Senate on 31 July 2007.
The Committee invites written submissions which should be sent to:
Committee Secretary
Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600
Australia
The closing date for submissions is Monday, 9 July.
The Committee requests that where possible, submissions should also be provided by email to economics.sen@aph.gov.au, preferably as MS Word or RTF format documents. Notes to assist in preparing submissions are available from the website https://www.aph.gov.au/senate/committee/wit_sub/index.htm.
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For further information, contact:
Committee Secretary
Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600
Australia