Tax Legislative Pipeline

While we welcome the Government's continued commitment to better tax design and implementation (as evidenced by the Board of Taxation's "Post-implementation review of the tax design review panel recommendations", which commenced in February 2011), the Government has a large number of key announcements made prior to this year's budget that have yet to be legislated.

Some of the more significant, yet to be legislated announcements from the current Government are below.

Measure	Status
Introduction and implementation of the proposed Minerals Resource Rent Tax (MRRT) and extension of the Petroleum Resource Rent Tax (PRRT).	Consultation on policy design was undertaken by the Policy Transition Group (PTG) in 2010. The Government announced on 24 March 2011 that it has accepted all 98 recommendations of the PTG (see PwC's Special Publication, March 2011). Although no exposure draft legislation has been released to date, consultation with the industry and the tax profession is currently being undertaken by the Resource Tax Implementation Group.
Reduction in the company tax rate to 29 per cent.	Proposed to apply to small business taxpayers from 1 July 2012, and all other corporate taxpayers from 1 July 2013.
General trust tax reform, including rewrite of existing provisions.	Exposure draft legislation in relation to certain improvements to the taxation of trust income was released for public comment on 13 April 2011. These proposed changes (primarily in relation to the streaming of trust income) are expected to apply from 1 July 2010. Consultation arrangements and timing in relation to the broader review of trust taxation are yet to be determined.
Managed Investment Trust regime.	Following the submissions received on the consultation on policy design that concluded late last year, the Government announced on 8 April 2011 that the start date would be delayed until 1 July 2012 to give industry additional time to prepare for the practical consequences of the reforms. Consultation on draft law is expected to commence in the coming months.
Review of the foreign source income anti-tax-deferral (attribution) rules (i.e. the controlled foreign company (CFC), proposed foreign accumulation fund (FAF) regime and related rules).	Treasury has received submissions on its Exposure draft legislation released for public comment in February 2011. No further timeframes or commencement dates have been released.
Further refinements to the taxation of financial arrangements (TOFA) rules, including foreign currency amendments.	In relation to the refinements to the TOFA rules, further consultation is expected. Note that further refinements were also advised in this year's Federal Budget. Legislation is expected to be introduced into Parliament in the 2011 Winter Sittings (which commenced Tuesday 10 May 2011) to give effect to the proposals relating to the foreign currency provisions, which have been outstanding for some years.
Off-market share buy-backs to implement the recommendations of the Board of Taxation's review of the tax treatment of off-market share buybacks.	These measures were proposed to take effect for off-market share buy-backs undertaken after the date of Royal Assent of amending legislation. Although consultation on policy design concluded in July 2009, no Exposure draft law has been publicly released.
Changes to the company loss recoupment rules to recognise multiple classes of shares.	We finally expect to see the legislation introduced into Parliament in the 2011 Winter Sittings (which commenced Tuesday 10 May 2011). Although note that further refinements to the company loss recoupment rules were advised in this year's Federal Budget.
Further Goods and Services Tax (GST) administration reforms arising from the Board of Taxation review into the legal framework for the administration of the GST.	Exposure draft legislation covering some measures has already been released for public comment. However, there remain a number of complex reforms where the details are yet to be determined.