In a media release issued on 6 January 2010, the Assistant Treasurer, Nick Sherry, announced that the Government will make it easier for shareholders to defer certain capital gains made during takeovers or when companies merge. The new laws will better align the CGT scrip for scrip roll-over requirements with the Corporations Act 2001, to make it easier for takeovers and mergers regulated by the Act to qualify for the roll-over.
The Assistant Treasurer said that carving out takeovers and mergers (including via a scheme of arrangement) that satisfy the member participation and other requirements of the Corporations Act from having to satisfy the member participation requirements of the scrip for scrip roll-over will ensure the roll-over operates more effectively.
The changes will apply to CGT events that happen on or after 6 January 2010.
The Assistant Treasurer indicated that the Government would undertake consultation on the design of the amendments and that the Additional Information in his media release would form the basis of this consultation. The closing date for submissions is Friday, 5 February 2010.
For a copy of the Assistant Treasurer's media release, No 2010/004, 6 January 2010, go here
For information about making a submission, go here