Trust tax reforms set back

The Federal government has set back its target date for broad reforms of the ways in which income from trusts is taxed.

These broad reforms, originally slated to start from July 1 next year, are now, technically, to start from  July 1, 2014.

However a new Federal election must be held before then and, on current polling, the present government is likely to be replaced, when that happens.

Despite that,  the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, issued a discussion paper today on this contentious subject.

He invited stakeholders to put their views on  what he called options for a more workable approach for fixed trusts.

Mr Bradbury said the discussion paper addresses some of the uncertainties and  complexities that  taxpayers face under the current approach to the taxation of fixed trusts,

He said the government had already received substantial feedback from interested stakeholders following the release of an earlier paper on this subject.

There had also been extensive consultation with the community on it..

Mr Bradbury said: “The Government has listened to the message from consultations that a later start date is preferred, allowing more time to develop the law, and for industry to prepare for changes.”

The Government will release a policy design paper in September which will further develop options for a model for the taxation of trusts,” he added.