The intended purpose or object of the provision might be shown in certain documents, such as the explanatory memorandum, second reading speech, relevant committee reports, and other contemporary documents that accompanied the original introduction or subsequent amendments to the relevant provision.
Consideration may also be given to other material such as the legislative provisions themselves or relevant Government announcements. Unlike statutory interpretation approaches, primacy is not to be given to the text of the relevant provision when ascertaining the intended purpose or object of a provision for the purpose of using the remedial power.
Describe how the suggested modification would be considered reasonable. Modifications made using the remedial power must be reasonable, having regard to the intended purpose or object of the provision to be modified and whether the cost of complying with that provision is disproportionate to achieving that intended purpose or object.
Other matters which go to reasonableness include:
- the extent to which the modification is favourable to entities;
- whether the modification would result in any adverse impacts on the tax liability of a third party or asymmetrical tax outcome;
- any current judicial interpretation of the relevant law;
- whether the modification would address a discrete or systemic issue with the law; and
- whether there are any differing stakeholder views on the issue.
The assessment of budget impacts will be determined by the Treasury or department of Finance. Please include any information that would assist in preparing an assessment of budget impacts of the modification. For example, a description of the population of entities affected, or whether the change would provide greater access to a tax benefit such as a deduction, offset or tax exemption.
