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Discussion Paper - Income Tax Treatment of Instalment Warrants

Date:

Wednesday, 10 March 2010

Content ID:

1724

Abstract:

On 10 March 2010, Senator the Hon Nick Sherry, announced that the Government will introduce legislation to amend the income tax treatment of 'traditional instalment warrants'. On the same day the Hon Chris Bowen MP, announced that the Government will introduce legislation to amend the income tax treatment of limited recourse borrowings of complying superannuation funds.

These announcements also indicated that the Government would undertake consultation on the design of these amendments, and subsequently on an exposure draft of the legislation.

This discussion paper outlines proposals to amend the income tax treatment of 'traditional instalment warrants' and limited recourse borrowings of complying superannuation funds. Specifically, the Government will legislate to treat the owner of a 'traditional instalment warrant' over an exchange traded security as the owner of the listed security. The Government will also legislate to treat a superannuation trustee who enters a non-recourse borrowing arrangement for the purpose of purchasing an asset, as permitted under subsection 67(4A) of the Superannuation Industry (Supervision) Act 1993 as the owner of the asset.

Making a submission

Interested parties are invited to comment on the paper. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Friday, 9 April 2010

Address written submissions to:
General Manager
Business Tax Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: instalmentwarrants_tax@treasury.gov.au.

For inquiries, please call Mr Graeme Cuxson on (02) 6263 3504.

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Income Tax Treatment of Instalment Warrants  266.01kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Income Tax Treatment of Instalment Warrants  5,221.46kb

Related Items:

Submissions: Discussion Paper - Income Tax Treatment of Instalment Warrants - 7/05/2010

Treasury received nine submissions in response to its discussion paper, 'Income Tax Treatment of Instalment Warrants'. All of these are public submissions. The submissions are listed below and are accessible by selecting the author.

The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury.

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