Federal Government consults on taxpayer protection measures for announced but un-enacted tax amendments

The Federal Government is seeking community views on its Exposure Draft Law which seeks to give taxpayers legislated protection where they have self-assessed on the basis of 48 announced but discontinued tax measures.  We will continue to monitor the progress of the protection measures.

After consultation with industry, the Federal Government announced in December 2013 that it would not proceed with 48 of 92 announced tax and superannuation measures which had not been legislated.

The Government has now released an Exposure Draft Law (and Explanatory Material) which seeks to:

  • give effect to the announcement of a legislated protection for taxpayers in relation to the 48 announced but discontinued measures; and 
  • ensure that outcomes are preserved in relation to income tax assessments where taxpayers have reasonably and in good faith anticipated the impact of those measures.

The protection measures:

  • effectively place a statutory bar on the Commissioner amending an income tax assessment to the extent that it reflects a taxpayer’s anticipation of the impact of an announcement that meets the specified conditions; and
  • operate to protect the taxpayer from liability for administrative overpayment by treating the taxpayer as being entitled to that amount where a taxpayer’s anticipation of the impact of an announcement would otherwise give rise to such a liability claim and provided that the specified conditions are met.

Submissions on the Exposure Draft Law were due by 22 April 2014.

See the media release dated 25 March 2014.