Capital gains tax - strengthening certain integrity provisions for scrip for scrip roll-over

On 8 May 2012, the former government announced as part of the 2012-13 Budget that it would amend the capital gains tax (CGT) scrip for scrip roll-over measure. Following consultation on the package of announced but unenacted measures, the current government announced on 14 December 2013 that it would proceed with this measure.

These changes are to have effect from 7.30pm (AEST) on 8 May 2012.

The changes are designed to address deficiencies in the existing integrity provisions identified in Commissioner of Taxation v AXA Asia Pacific Holdings Ltd (2010) FCAFC 134 (the AXA case). As announced, the measure would remove tax minimisation opportunities in the CGT scrip for scrip roll-over provisions that were highlighted by the AXA case, and would prevent taxpayers adopting arrangements that circumvent the integrity provisions and defer their capital gain indefinitely. The measure would also remove other weaknesses in the roll-over provisions.

The exposure draft External Linkof the legislation and explanatory memorandum of the proposed law were released for consultation on 29 April 2015 and submissions closed on 20 May 2015.

Legislation to implement this measure received royal assent on 13 October 2015.

For more information, refer to:

Tax and Superannuation Laws Amendment (2015 Measures No. 4) Act 2015External Link

Explanatory memorandum External Link

Media release

For more information, refer to:

Joint Media Release 003-2013 on 6 November 2013External Link, ‘Restoring integrity in the Australian tax system’ by the then Treasurer and Assistant Treasurer.

Media Release 008-2013 on 14 December 2013External Link ‘Integrity restored to the Australian tax system’ by the then Assistant Treasurer.

Find out more

Budget Paper No. 2: Budget measures 2012–13, Part 1: Revenue measuresExternal Link.

    Last modified: 26 Oct 2015QC 45011