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  • Small business restructure roll-over (capital gains tax roll-over relief)

    The small business restructure roll-over was announced in the 2015–16 Budget as part of the Growing Jobs and Small Business package.

    Broadly, this act:

    • provides greater flexibility for small business owners to change the legal structure of their business by allowing them to defer gains or losses that would otherwise be realised when business assets are transferred from one entity to another
    • provides small businesses with a new roll-over for gains and losses arising from the transfer of active assets that are CGT assets, trading stock, revenue assets and/or depreciating assets between entities as part of a genuine restructure of an ongoing business
    • applies to transfers that do not result in a change in the ultimate economic ownership of the assets
    • is in addition to roll-overs currently available where an individual, trustee, or partner in a partnership transfers assets to, or creates assets in, a company in the course of restructuring their business
    • extends the relief to include transfer of trading stock, revenue assets, and depreciating assets.

    These changes apply to transfers occurring on or after 1 July 2016.

    Legislation and supporting material

    The Tax Laws Amendment (Small Business Restructure Roll-over) Act 2016External Link received royal assent on 8 March 2016.

    Guidance material has been developed in support of this change, see Applying the small business restructure rollover.

    The following law companion rulings describe how we will apply the law:

    More information:

      Last modified: 19 Feb 2018QC 45095