Second Reading Speech
BY THE PARLIAMENTARY SECRETARY (CABINET) TO THE PRIME MINISTER THE HON CHRIS MILES M.P.That the bill be now read a second time.
As a result of changes to the Corporations Law, the bill will amend the Income Tax Assessment Act 1936 and associated tax laws to prevent dividend substitution and capital streaming arrangements and make various consequential amendments to the tax laws. The bill also introduces a tainting rule that treats distributions from a tainted share capital account as unfrankable and unrebateable dividends in the hands of shareholders. The amendments will apply on a day to be fixed by proclamation after the bill has been passed by parliament. In respect of the anti-avoidance rule, the rule is to apply to distributions made, or bonus shares issued, after that time, unless made or issued pursuant to a binding commitment entered into before 13 November 1997. I commend the bill to the House and present the explanatory memorandum.
Debate (on motion by Dr Theophanous) adjourned.