Chapter 8 - Effects of suggested implementation date
8.1 We have suggested that possible legislative changes discussed in this paper should generally apply from the 2008-09 income year, given that amending legislation is unlikely to be introduced until the middle of 2007, and unlikely to be enacted until late 2007. Determination G30, which was issued as a transitional measure to deal with the tax consequences of IFRS, will be withdrawn at the same time.
8.2 This general application date may not be suitable for some changes because taxpayers who are early adopters of IFRS (whose earliest IFRS balance date could be 31 December 2005) may have filed their tax returns by then. In that case, they could make any required adjustments – such as recognising previously unrecognised income recorded directly in the shareholders’ funds during the transition year – in the 2008-09 income year.
8.3 Taxpayers may also have adopted a specific interpretation of the existing tax legislation that may not be consistent with officials’ interpretation or the suggestions contained in this issues paper. Transitional arrangements will be considered for taxpayers in this position.
8.4 Submissions are sought on areas where earlier application of the changes suggested in this issues paper may be helpful or where transitional arrangements may be required.
Summary of suggested changes
The suggested legislative changes should generally apply from the 2008-09 income year, and Determination G30 should be withdrawn at the same time. Taxpayers would be able to make any adjustments required as a result of suggestions in this issues paper in the 2008-09 income year.