Bill returned from the Senate with amendments.

Ordered that the amendments be taken into consideration forthwith.

Senate's amendments—

(1) Schedule 4, item 8, page 90 (line 33) to page 91 (line 9), omit subsection (10), substitute:

Deltas of positions to be taken not to have changed in certain circumstances

(10) If:

(a) a taxpayer acquires shares or interests in shares; and

(b) on the day of the acquisition, or on a later day, the taxpayer enters into or has positions in relation to any of the shares or interests;

then, so long as the taxpayer continues to hold the shares or interests, continues to have those positions and does not enter into any further positions in relation to the shares or interests:

(c) in calculating the delta of a position held by the taxpayer in relation to the shares or interests:

(i) for the purposes of this Division other than paragraphs 106APHO(1)(b) and 160APHP(1)(b); or

(ii) for the purposes of either of those paragraphs in its application to a related payment under an arrangement entered into before the commencement of this subsection, other than an arrangement that has been varied, renewed or replaced after that commencement;

those positions are taken to continue to have the deltas that they had on the later of the following days:

(iii) the day on which the shares or interests were acquired;

(iv) a day on which any of the positions was entered into; or

(d) in calculating the delta of a position held by the taxpayer in relation to the shares or interests for the purposes of paragraph 160APHO(1)(b) or 160APHP(1)(b) in its application to a related payment under an arrangement:

(i) entered into after the commencement of this subsection (including an arrangement that renewed or replaced an arrangement entered into before that commencement); or

(ii) entered into before that commencement that was varied after that commencement;

those positions are taken to continue to have the deltas that they had on the latest of the following days:

(iii) the day on which the shares or interests were acquired by the taxpayer;

(iv) a day on which any of the positions that the taxpayer has in relation to the shares or interests was entered into;

(v) if the secondary qualification period in relation to the taxpayer in relation to the shares or interests is the second, or a subsequent, qualification period since the shares or interests were acquired by the taxpayer—the first day of the secondary qualification period.

(2) Schedule 4, item 25, page 124 (line 34) to page 125 (line 4), omit subitem (9), substitute:

(9) A reference in a provision inserted in the Income Tax Assessment Act 1936 by this Schedule to a related payment in respect of a dividend or distribution:

(a) is a reference to a related payment under an arrangement entered into after 7.30 pm by legal time in the Australian Capital Territory on 13 May 1997, whether or not the shares or interests in shares in respect of which the dividend was paid or the distribution was made were acquired by the taxpayer before or after that time; but

(b) does not include a reference to a related payment made under a contract for the sale of derivatives known as Share Price Index Futures that was made before 2 July 1998.

(3) Schedule 7, item 2, page 185 (lines 23 to 26), omit subparagraph (c)(i), substitute:

(i) in respect of an interest in the trust or partnership that was created before the commencing time and either was acquired on or after 2 July 1998 or was created or acquired for a term that was extended at or after the commencing time; or

(ia) in respect of an interest in the trust or partnership that was created at or after the commencing time; or

Motion (by Dr Kemp) proposed:

That the amendments be agreed to.