Stakeholders are invited to comment on a discussion paper canvassing options for possible amendments to the dividends payment test, said Parliamentary Secretary to the Treasurer, David Bradbury.
In June 2010, the Government made a range of amendments to the Corporations Act 2001 to cut down on the red tape and regulatory burden of Australian companies.
Following the implementation of these reforms, the Government is now examining options for refining some of these provisions, including those relating to the dividends payment test and parent entity reporting requirements.
"The Gillard Government is committed to ensuring that our corporate law framework is clear, robust and provides certainty for Australian businesses," said Mr Bradbury.
"The Government has responded to stakeholder feedback, particularly on the dividends payment test, and is exploring whether further refinement of the provision is needed.
"The discussion paper also examines whether reform is needed to clarify the interaction of the dividends test with the capital maintenance provisions and examines changes to how the dividends test applies to group companies.
"I look forward to working with stakeholders as the Government takes these issues forward."
The discussion paper, Proposed Amendments to the Corporations Act, can be found at www.treasury.gov.au. Submissions will close on 30 January 2012.
28 November 2011