Treasury has published an exposure draft amendment to the Income Tax Assessment Act 1997 and explanatory material to disallow deductions against taxable government assistance payments that are eligible for a rebatable benefit.

The Government announced in the 2011-12 Budget that it would disallow deductions against government assistance payments following the High Court decision in Commissioner of Taxation v Anstis [2010] HCA 40.

The amendment is to have effect from 1 July 2011.