Craig Emerson (Rankin, Australian Labor Party, Minister Assisting the Finance Minister on Deregulation) Share this | Hansard source

I move:

That the amendments be agreed  to.

Amendments (1) to (7) amend schedule 3 of the bill. Broadly, schedule 3 amends the tax law to allow eligible Australian managed investment trusts to make an irrevocable choice to apply the capital gains tax provisions as the primary code for the taxation of gains and losses on disposal of certain assets, primarily shares, units and rural property. Following the introduction of the Tax Laws Amendment (2010 Measures No. 1) Bill 2010 into parliament, the government announced changes to the general withholding tax definition of managed investment trusts to align it more closely with the capital account definition in this bill. The government will not, however, proceed with certain provisions in schedule 3 that would have expanded the meaning of managed investment trusts for capital account purposes. The government is undertaking further consultation with key stakeholders to ensure that the aligned definition is better targeted to achieve its policy objectives in relation to both the withholding tax and the capital account measures. The proposed changes to align the definitions of managed investment trusts more closely will be introduced into parliament at a later date.

Amendments (2), (3), (5), (6) and (7) make some minor technical corrections to schedule (3) and amendments (8) to (18) amend various parts of schedule 5 to the bill. That schedule amends the consolidation regime. These amendments address several issues that have arisen since the bill was introduced into parliament. Amendments (8) to (12) modify part 1 of schedule 5 to clarify the treatment of the tax costs, setting the amount allocated to assets that are rights to future income. Amendments (15) to (17) modify part 16 of schedule 5, which makes it easier for widely held companies to satisfy the loss multiplication rules so that the amendments apply appropriately to foreign owned consolidated groups. Amendment (18) modifies part 18 of schedule 5, which relates to consolidation choices to overcome concerns that the amendments could have an adverse retrospective impact on taxpayers in some very limited circumstances. Finally, amendments (13) and (14) make some technical corrections to the bill.

Question agreed to.

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