TOFA changes

The Assistant Treasurer, Senator Nick Sherry,has announced several amendments to the income tax law relating to the Taxation of Financial Arrangements, (TOFA).

The changes include:

• the interaction of TOFA and the pay as you go (PAYG) instalments system.
• clarify that a dividend paid on a share that is a debt interest may be deductible
• Modify the assets threshold test that applies to regulated superannuation funds so that it also applies to unregulated superannuation funds on the same basis