House of Representatives

Tax Laws Amendment (Loss Recoupment Rules and Other Measures) Bill 2005

Supplementary Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello MP)
Amendment to be moved on behalf of the Government.

General outline and financial impact

Amendment 1 to Schedule 5 - relief for employee share scheme participants in the event of a corporate restructure

This amendment changes the date of effect of the measure from Royal Assent to 1 July 2004. This ensures that an employee who is issued new shares or rights as a result of a corporate restructure can treat the new shares or rights as a continuation of their old shares or rights, from 1 July 2004.

Date of effect: This amendment will apply to corporate restructures which occur on or after 1 July 2004.

Proposal announced: This amendment has not previously been announced.

Financial impact: The cost to the revenue is unquantifiable but expected to be small. The new commencement date of 1 July 2004 will bring forward any revenue impact.

Compliance cost impact: This amendment is expected to have a minimal impact on compliance costs.

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