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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 was admitted as a Solicitor in 2002 and is a partner at Deloitte Private. He has experience in the areas of taxation, structuring, trusts and estate, succession and asset protection planning. John has a Bachelor of Arts, Bachelor of Laws and a Masters of Law. He is currently Queensland’s representative on the Institute’s National Professional Development Committee, a member of Queensland’s State Council and elected 2019 State Council Chair. - Current at 25 June 2019
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