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  2026

Taxing earnouts – Navigating the patchwork quilt

Source: Victoria

Published Date: 19 Mar 2026

 

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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.
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Details

  • Published By: Karen Goodfellow CTA
  • Published On:19 Mar 2026
  • Event Name:VIC Tax Forum
  • Session Name:Taxing earnouts – Navigating the patchwork quilt
  • Read Time:30+ minutes
  • Took place at:W Melbourne

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