Minister for Revenue and Assistant Treasurer Helen Coonan is now concentrating on business tax reform. The New Business Tax System (Consolidation and Other Measures) Bill (No.1) 2002 follows the core consolidation platform introduced in May and June of this year.

Senator Coonan said the legislation includes the important third stage measures in the progressive introduction of the consolidation regime into Parliament.

Consolidation will allow wholly-owned corporate groups to be treated as a one entity for tax purposes. This in turn reduces the compliance burden and provides greater flexibility to business. Further amendments that deal with the special imputation rules for life insurers will apply from July 1 2002.

All of the tax measures introduced through this bill are the result of thorough consultation with business groups, Senator Coonan said.