On 14 May 2013, the previous government announced amendments to the foreign resident CGT Principal Asset Test which would:
- value mining, quarrying or prospecting information and goodwill together with the mining rights to which they relate; and
- remove the ability to use transactions between members of the same consolidated group to create and duplicate assets.
On 4 November 2013, the Government announced that it would proceed with the announced amendments to the Principal Asset Test.
The proposed amendments in the exposure draft legislation also include a change that has been made to the scope of the asset duplication measure. In particular, its scope is not restricted to entities that are members of the same consolidated group or MEC group.
The exposure draft explanatory memorandum notes the Government’s decision to defer proceeding with the valuation measure pending the outcome of ongoing litigation of the issue.