Taxing earnouts – Navigating the patchwork quilt
Source: Victoria
Published Date: 19 Mar 2026
This session unpacked the tax treatment of earnouts from both the vendor’s and purchaser’s perspectives. It covers:
- The different types of earnouts;
- The tax treatment of ‘look-through earnout rights’ under Subdivision 118-I of the Income Tax Assessment Act 1997 (Cth), including how the small business CGT concession regime deals with those rights.
- The uncertainties surrounding the tax treatment of earnout rights not captured by Subdivision 118-I; and
- Tips from a drafting perspective to minimise uncertainty.
Individual Session
Details
- Published By: Karen Goodfellow CTA
- Published On:19 Mar 2026
- Event Name:VIC Tax Forum
- Session Name:Taxing earnouts – Navigating the patchwork quilt
- Listen Time:1+ hour
- Took place at:W Melbourne
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page