Income Tax Regulations (Amendment) 1995 No. 381
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 381
Issued By Authority Of The Assistant Treasurer
Income Tax Assessment Act 1936
Income Tax Regulations (Amendment)
Section 266 of the Income Tax Assessment Act 1936 (the Act) provides that the Governor-General may make regulations prescribing matters required to give effect to the Act.
These regulations propose to amend the Income Tax Regulations by inserting new Regulation 14E, which will prescribe Government schemes for the purposes of subsection 160L(6A) of the capital gains tax (CGT) provisions of the Act.
Subsection 160L(6A) of the Act provides that CGT will not apply to payments and reimbursements made under certain government schemes.
A scheme covered by subsection 160L(6A) must be established by the Commonwealth, a State or a Territory or by an authority of the Commonwealth, a State or a Territory. In addition, the scheme must be prescribed in the regulations.
New Regulation 14E, proposed by Regulation 2, provides that the General Practice Rural Incentives Program administered by the Commonwealth Department of Human Services and Health will be a scheme to which subsection 160L(6A) applies. The scheme seeks to attract and retain general practitioners in rural and remote regions of Australia and offers grants of various types including relocation grants for practitioners for the costs of moving and establishing a new practice.
By subregulation 14E(1), the Regulations will apply to disposals of assets on or after 1 July 1992.