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Small business restructure
Published on 01 Jul 16 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
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, is a Principal Lawyer at Macpherson Kelley and leads the national tax practice. He has experience in the areas of tax structuring, tax disputes and commercial transactions. John has a Bachelor of Arts, Bachelor of Laws and a Masters of Law. John is currently serving as the QLD representative on the Tax Institute's National Council. - Current at 15 December 2025
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