Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Hansard source

I present a supplementary explanatory memorandum to the bill and I move the government amendment as circulated:

(1)    Schedule 8, item 4, page 109 (after line 25), after subparagraph 102NA(2)(b)(ii), insert:

             or (iii)    a trust whose trustee was, before the scheme was completed, assessed and liable to pay tax under Division 6B or this Division and that was, before the scheme was completed, one of those stapled entities; or

                 (iv)    an entity that is controlled or able to be controlled, directly or indirectly, by the trust referred to in subparagraph (iii);

Schedule 8 of the bill includes a measure that allows a staple group of entities to restructure with an interposed head trust without triggering certain taxation consequences. Under the measure, a restructure that involves interposing a head trust over a public unit trust that is a staple to a company will not result in the interposed head trust being taxed as a company under division 6C of the Income Tax Assessment Act 1936.

Some staple entities, however, consist of public unit trusts that are staple to other trusts that, while taxed as companies, are not companies at law. Under this amendment to schedule 8, a restructure that involves interposing a head trust over a public unit trust that is staple to a trust taxed like a company will also obtain the benefits of the measure in schedule 8. Full details of the changes are contained in the supplementary explanatory memorandum.

Question agreed to.

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