On 29 June 2010, the then Assistant Treasurer announced that the Government would amend the TOFA tax rules to further lower compliance costs and provide additional certainty to affected taxpayers. The proposed amendments are the outcome of ongoing monitoring of the implementation of the TOFA regime, and were announced following extensive consultation with industry.
The legislation in this exposure draft aims to implement the announced changes relating to the following parts of the TOFA tax rules:
- core rules;
- accruals and realisation methods;
- fair value method;
- hedging financial arrangements method;
- transitional balancing adjustment provisions; and
- requirements for making certain elections.