Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

by leave—I move:

(1)    Schedule 4, item 2, page 17 (line 30) to page 18 (line 7), omit subclause (3), substitute:

        (3)    The first element of the ^*cost base and ^*reduced cost base of a ^*CGT asset on 10 May 2005 is the ^*market value of the asset on that day if, on that day:

             (a)    the CGT asset was a ^*membership interest you held in another entity; and

             (b)    you were a foreign resident, or the trustee of a trust that was not a ^*resident trust for CGT purposes; and

             (c)    the CGT asset was a ^*post-CGT asset; and

             (d)    the CGT asset did not have the necessary connection with Australia (within the meaning of this Act as in force on that day) disregarding the operation of paragraph (b) of item 5 and paragraph (b) of item 6 of the table in section 136-25 (as in force on that day).

(2)    Schedule 4, item 38A, page 33 (after line 1, cell at table item 28, 2nd column), omit the cell, substitute:

                      On 10 May 2005, a foreign resident holds certain membership interests

As Senator Sherry mentioned, these are amendments to the capital gains tax and foreign resident measure. The amendments provide for a cost base of market value for certain assets that would not have been subject to Australia’s CGT regime prior to this measure being introduced. This will ensure that all such assets held by foreign residents on the date of announcement of the measure, 10 May 2005, and which subsequently become subject to Australia’s CGT regime receive a cost base of market value as at that date—10 May 2005. I am advised the amendment has no financial impact, so I commend the amendments to the committee.