Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon P.J. Keating MP)
Main features of the amendments
A number of further amendments to the Bill are to be moved on behalf of the government. These further amendments relate to changes proposed by the Bill to the capital gains tax (CGT) provisions contained in Part IIIA of the Income Tax Assessment Act 1936. First, clause 44 of the Bill will be amended to ensure that effective gains realised on the disposal of an interest in a partnership cannot be taxed twice. Clause 57 of the Bill will also be amended to ensure that an individual partner can obtain rollover relief on the disposal of an interest in a partnership asset to a company 100 per cent owned by the partner.
Finally, an amendment to clause 61 will ensure that cost base adjustments (following the transfer of an asset between two companies under common ownership for reduced consideration) will not be made to genuine third-party loans which have not been reduced in value as the result of an asset's transfer.