An Avalanche of Consolidation Changes!
Published on 08 May 2009
| Took place at RACV Club, Melbourne
On the 28th April 2009, the Government released, in exposure draft form, a package of proposed legislative
amendments dealing with 19 consolidation issues that had been initially foreshadowed in announcements back to
December 2005. A further 6 issues remain under review.
These measures are particularly important as they impact on most ‘formation’ calculations for larger corporate
groups and tax outcomes for subsequent corporate acquisitions and divestments. Many of them are stated as
having retrospective application back to 1 July 2002!
The measure dealing with pre-CGT interests will also be directly relevant to many non-listed corporate groups.
In many cases these amendments, when enacted, could result in additional capital losses under CGT event L6
becoming available. Unfortunately, in other cases gains may arise.
This event briefed delegates on the scope of these measures and their practical implications.