Mitch Fifield (Victoria, Liberal Party, Shadow Parliamentary Secretary for Disabilities, Carers and the Voluntary Sector) Share this | Hansard source

I rise to speak on the Tax Laws Amendment (2009 Measures No. 6) Bill 2009 which the coalition is supporting. Principally, this bill seeks to amend various aspects of tax law relating to the removal of the capital gains tax trust cloning exception and the introduction of limited fixed trust rollover, loss relief for merging superannuation funds, rules relating to income derived from exempt annuity businesses of life insurance companies—try saying that three times quickly—updates to the list of deductible gift recipients, income tax exemption for the income recovery subsidy payments made to eligible recipients affected by the north-western Queensland floods and excise on spirits used for industrial purposes.

Schedule 1 of this bill refers to the abolition of the exception known as trust cloning to capital gains tax events E1 and E2 and replaces it with a limited CGT rollover. CGT event E1 is when a trust is created over a CGT asset and CGT event E2 is when a CGT asset is transferred into an existing trust. Mr Acting Deputy President Forshaw, I will be checking afterwards if you can recite that without reading it.