House of Representatives

Addendum to the Explanatory Memorandum

Circulated By the Authority of the Treasurer, the Hon Wayne Swan Mp

Insert the following after paragraph 2.37:

Review rights relating to the Commissioner's discretion

2.37A The Commissioner's exercise of a discretion under the non-commercial losses rules (including a decision not to exercise a discretion) is a matter leading up to or forming part of the making of an income tax assessment.

2.37B All decisions leading up to or forming part of the making of an income tax assessment are subject to a formal review process (including internal review and review by the Administrative Appeals Tribunal and Federal Court of Australia).