Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello MP)
General outline and financial impact
Amendment 1 resets the cost base of indirect Australian real property interests that are interests that were not previously taxable for foreign residents, to the market value of such interests on 10 May 2005, the date the Treasurer announced the measure in Press Release No. 44.
Amendment 2 is a consequential amendment that removes a requirement for providing demerger relief to ensure that resident taxpayers are not adversely affected by the legislation as introduced.
Date of effect: The amendments will apply to capital gains tax events occurring on or after Royal Assent.
Proposal announced: These amendments have not previously been announced.
Financial impact: Amendment 1 will have these revenue implications:
Amendment 2 has no cost to revenue.
Compliance cost impact: These amendments reduce compliance costs for affected taxpayers.