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Small business restructure


Legislation to implement a small business restructure roll-over was enacted early in 2016, following the release of, and submissions on, an exposure draft in 2015. The new measure will take effect on 1 July 2016. It is intended to provide a mechanism to enable small businesses to restructure their affairs without income tax implications (but still requiring a consideration of GST, duty, Corporations Act, Bankruptcy Act and trust law issues). The roll-over works to disregard any gains or losses that would otherwise arise as a consequence of transferring business assets, making it less costly to change legal structure.

This article examines the original proposal, submissions on the exposure draft, and the roll-over requirements as finally enacted. The important question of consideration being provided is highlighted as it is likely to become a practical issue that will be required to be addressed in the context of private company and trust transferors.

Author profile

John Ioannou CTA
John Ioannou, CTA was admitted as a Solicitor in 2002 and is a Principal Lawyer at Macpherson Kelley. He has experience in the areas of taxation, structuring, commercial transactions, disputes, trusts and estates, succession and asset protection planning. John has a Bachelor of Arts, Bachelor of Laws and a Master of Law. He is Chair of the Tax Institute’s Queensland’s State Council in addition to being a State Councillor. - Current at 04 November 2020
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