Post-Implementation Review into Certain Aspects of the Consolidation Regime

Background

On 3 June 2009, the then Assistant Treasurer announced that the Board would undertake a post-implementation review of certain aspects of the consolidation regime.

Terms of Reference

The Board has established criteria against which it will evaluate legislation selected for a post‑implementation review. The criteria include the extent to which the legislation:

• gives effect to the Government’s policy intent, with compliance and administration costs commensurate with those foreshadowed in the Regulation Impact Statement for the measure;
• is expressed in a clear, simple, comprehensible and workable manner;
• avoids unintended consequences of a substantive nature;
• takes account of actual taxpayer circumstances and commercial practices;
• is consistent with other tax legislation; and
• provides certainty.

Discussion Paper

On 9 December 2009, the Board of Taxation released its discussion paper on the post-implementation review into certain aspects of the consolidation regime. The Board developed the discussion paper to facilitate stakeholder consultation and received a number of submissions. All submissions received were acknowledged.

Consultation meetings

To assist in the review process, the Board conducted consultation meetings in February 2010. Consultation meetings were held on 1 February 2010 in Sydney and 3 February 2010 in Melbourne. The consultation meetings were attended by representatives from taxation professional bodies, major law and accounting firms, various major corporations and business associations.

Position Paper

On 13 October 2010, the then Chairman of the Board of Taxation announced the release of a position paper and invited submissions from stakeholders. The position paper set out the Board’s considered views on the issues raised in the discussion paper and in stakeholder submissions. The Board requested a second round of written stakeholder submissions by 26 November 2010. All submissions received were acknowledged.

Board’s report

The Board finalized and submitted its report to the Assistant Treasurer in June 2012. On 14 May 2013, the Assistant Treasurer and Minister Assisting for Deregulation, the Hon David Bradbury MP, announced the release of the Board of Taxation’s Post-Implementation Review Into Certain Aspects of the Consolidation Regime report. The Board’s report and transmittal letter are available for download.

Government response

In the Government’s announcement of 14 May 2013 it agreed to a number of recommendations in full, three recommendations were deferred for additional recommendations and the remainder were accepted in principle.

Later, the Abbott Government announced that the measures agreed to the by the former Government would not proceed on the ‘announced but unenacted’ measures in December 2013.

Further information on this review can be obtained from the Board of Taxation Secretariat on (02) 6263 4366 or taxboard@treasury.gov.au. For further information about the Post-Implementation reviews of the Consolidation Regime please see this link.

Submissions received

Submissions received - Second round