What is capital gains tax?
A capital gain is when the amount you sell an asset for is more than the original price you paid for it. Capital gains tax (CGT) is tax you pay on this profit.
What is roll-over relief?
CGT roll-over relief for Indigenous corporations means that you don't have to pay CGT on any capital gains which have occurred because of one of the following:
- two or more Indigenous corporations have united
- an Indigenous corporation has transferred to the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
Who is eligible?
Indigenous corporations and their members, other business entities, shareholders and holders of ownership interests that meet the criteria are eligible for roll-over relief.
If you think you are eligible for roll-over relief, contact us or a registered tax practitioner to discuss the rules and conditions.
Are you part of an Aboriginal and Torres Strait Islander corporation?
CGT roll-over relief is now available for an Indigenous corporation that has either:
- transferred its incorporation
- wound up and then reincorporated.
Relief will be available where the transfer or reincorporation occurs under either of the following legislations:
- Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI)
- Corporations Act 2001.
What is the CATSI Act?
The CATSI Act enables Indigenous groups to form corporations and includes special measures to meet the specific needs of Indigenous Australians. It replaces the Aboriginal Councils and Associations Act 1976 (the ACA Act).
Registration of corporations under the CATSI Act is mostly voluntary. Corporations who must register include 'prescribed bodies corporate' set up under the Native Title Act 1993. You can find out if you must register under the CATSI Act by phoning the Office of the Registrar of Indigenous Corporations (ORIC) on 1800 622 431.
What is a corporation?
A corporation is a company or group of people who act and are legally recognised as being a single entity.
When do these changes apply?
The law is retrospective (that is, it applies to events in the past). The changes will apply to transfers and re-incorporations that happened from 7.30pm Australian Eastern Standard Time on 11 May 2010.
Already lodged your tax return?
If you think CGT roll-over relief applies to you and you already lodged your 2010, 2011 or 2012 income tax returns, you will need to phone us on 13 28 66 to apply to have changes made to your tax returns.
More information
For more information about CGT, you can:
For more information about non-profit organisations and CGT, refer to Is your non-profit organisation subject to capital gains tax?
Last Modified: Wednesday, 28 November 2012