Water reform relief
State and Territory reforms to streamline governance arrangements applying to private water supply and drainage systems will receive income tax relief from proposed amendments including CGT and capital allowance roll-over relief.  These changes will ensure that income tax is not an impediment to the reforms and will provide greater certainty to taxpayers about the application of the federal Water Market Rules 2009, remove unnecessary regulation and give water users flexibility to reconfigure their water delivery systems.
 
Luxury car tax
Consistent with the GST-free and Customs duty free treatment of imported art work or collectors' pieces, eligible entities (such as endorsed public museums and art galleries) will be able to import cars free of the luxury car tax. The implementation of this measure will be from the date of assent to the amending legislation.

Minerals Resource Rent Tax
The Government will adopt the recommendations of the Policy Transition Group (PTG) as the basis of the detailed framework for Australia’s new resource tax arrangement.  The key PTG recommendations cover issues regarding taxing point, starting base losses, deductions and tests for deductibility, a phased extension of the $50 million threshold and transferability of expenditure and project losses. 

Special Disability Trusts
Since 1 July 2006, families have been able to establish a Special Disability Trust (SDT) to provide for the needs of a family member with a severe disability.  SDTs are eligible for social security means tested concessions.  A range of capital gains tax concessions are to be introduced which relate to the transfer of a main residence to a SDT or the subsequent disposal of that residence by the SDT.  These rules will apply to SDT’s set up under both the Social Security Act and the Veterans’ Entitlements Act.  They will apply with effect from 1 July 2006, being the earliest time a SDT was able to be established. 

Farm Management Deposits
Primary producers affected by natural disasters will be able to access their Farm Management Deposits within 12 months of making a deposit and retain the concessional tax treatment available under the scheme.  A number of minor administration changes will also be made to the scheme.