Tax blog 91 small businesses changing legal structure roll over

TAX BLOG 91 -- SMALL BUSINESSES CHANGING LEGAL STRUCTURE -- ROLL-OVER

The Tax Laws Amendment (Small Business Restructure Roll-Over) Bill 2016 aims at providing roll-over relief for small businesses undertaking a restructure, namely any tax consequences of asset transfers.

Since under the Bill there will be no tax outcomes, small businesses will be spared any cash flow problems.

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There will be several conditions to be satisfied for the roll-over to apply:

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The restructure must be genuine

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Transferor and transferee of the business asset must be resident in Australia

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The transferred asset must be a CGT asset; and

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The transfer must not change the ultimate economic ownership of the relevant asset.

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The new roll-over relief rules will apply to transfers on or after 1 July 2016.

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