I certainly agree with you and it has been something ongoing for some time, like some of the old inter-related loans and trusts etc that had to be wound down by a few years back.
Not sure how much additional angst it actually generates within the ATO, but that's because I just have no idea.
Anyway yes, the watering down over the years has been crazy but don't blame Rudd, he's just the conduit for the Labor 'if you don't help yourself, we'll provide some help for you' philosophy. Instead, blame anyone you know that voted for them..shame, shame, shame.