On May 27, 2019, the Department of Finance released draft legislative proposals that aim to facilitate the conversion of existing Health and Welfare Trusts into Employee Life and Health Trusts and would amend the existing Employee Life and Health Trust tax rules to allow Health and Welfare Trusts to continue to operate similarly after the conversion.
The 2018 Federal Budget proposed that legislative provisions be introduced to convert the Health and Welfare Trusts (HWTs) into Employee Life and Health Trusts (ELHTs). This would mean only one set of tax rules would apply to these arrangements after 2020. The government invited stakeholders to provide input on this transition and consultations concluded on June 29, 2018. PBI along with other industry stakeholders and clients submitted recommendations and comments.
Please click on the following link to download the article summarizing the differences between the previous legislation and the draft legislative proposals in PDF format: