Exposure draft legislation and explanatory material has been released today which will provide certainty about the way native title benefits interact with the income tax system.
This measure was part of a range of native title reforms announced by Attorney-General Nicola Roxon at the National Native Title Conference in Townsville on 6 June 2012.
The proposed measure clarifies that native title benefits, provided under the Native Title Act 1993, or under an agreement made under an Australian law to the extent that the payment or benefit relates to native title will not be subject to income tax.
In the 20th year since the Mabo native title High Court decision, the Government is proceeding with a package of reforms that will improve outcomes for native title stakeholders.
Clarifying the tax treatment of native title benefits will provide much needed certainty to Indigenous communities when they are negotiating native title agreements.
This change is in response to stakeholder feedback received during the 2010 consultation on the 'Native Title, Indigenous Economic Development and Tax' paper.
The amendments will apply to native title benefits received on or after 1 July 2008.
Copies of the exposure draft and explanatory material can be obtained from the Treasury website. Consultation on the exposure draft will close on 24 August 2012.