The Federal Government has invited stakeholders to comment on a discussion paper canvassing options for possible amendments to the dividends payment test.

 

The government is now examining possibilities for refining provisions, including those relating to the dividends payment test and parent entity reporting requirements.

 

"The Government has responded to stakeholder feedback, particularly on the dividends payment test, and is exploring whether further refinement of the provision is needed,” Parliamentary Secretary to the Treasurer, David Bradbury said.

 

"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.

 

The discussion paper, Proposed Amendments to the Corporations Act, can be found at www.treasury.gov.au. Submissions will close on 30 January 2012.