Your shopping cart is empty
Small business restructure roll-over – opportunities and traps
Published on 01 Apr 16 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
As part of the 2015-16 Budget, the government committed to providing greater flexibility for small businesses when changing their legal structure. To this end, the Tax Laws Amendment (Small Business Restructure Roll-over) Act 2016 was enacted to enable a new small business restructure roll-over (SBR roll-over) that allows small businesses whose aggregate annual turnover is less than $2m to restructure their business asset holdings without income tax and CGT liabilities. In light of the upcoming 1 July 2016 commencement date, this article examines the opportunities and traps of the new SBR roll-over, how the roll-over works, the conditions that must be satisfied to claim the roll-over, the “genuine restructure” and “ultimate economic ownership” requirements, and anti-avoidance provisions that need to be taken into account when using the roll-over.
The article also provides examples where the roll-over might be appropriate, and considers stamp duty and GST issues, and the exemptions or concessions that may be available.
Author profiles
Mark West CTA
Mark is a qualified as a lawyer, chartered accountant and chartered tax adviser, Mark provides advice across the spectrum of taxes. Mark assists with all legal matters involving taxation law. He advises on appropriate business or investment structures/restructures and on making applications for rulings from the ATO. He assists with tax audits and with related settlement negotiations with the ATO and State revenue authorities. He has acted for clients in tax cases before the Administrative Appeals Tribunal and the Full Federal Court. Mark been listed as a leading tax lawyer in Queensland by Doyles Guide and The Best Lawyers™ in Australia.
- Current at
15 March 2021
Dung Lam CTA
Dung is a Principal at West Garbutt and is based in Sydney. Dung has more than 20 years of experience in advising corporates, small-to-medium enterprises, high net worth individuals, professional firms, accountants, financial planners and their clients, on a variety of taxes including income tax, capital gains tax, GST and state taxes such as duty, payroll tax and land tax. Dung also has extensive experience advising on taxation trusts, estate planning and superannuation issues in the SMSF arena. Dung is a Chartered Tax Adviser, full member of the Society of Trusts and Estate Practitioners, an accredited Specialist in Business and Personal Tax with the NSW Law Society, among others. Dung advises a broad range of clients, including corporates, small-to-medium enterprises, high net worth individuals, professional firms, accountants, financial planners and their clients. - Current at 15 June 2022
The Tax Institute is Australia's leading professional association and educator in tax providing the best resources, professional development and networks.