This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

Amendments to scrip for scrip roll-over, the small business concessions and beneficial interests

The government has amended the law to ensure the scrip for scrip roll-over integrity provisions that apply to individuals and companies also apply to trusts, superannuation funds and life insurance companies.

The government has also amended the small business tax concessions so that trusts cannot avoid being treated as connected entities for the purpose of testing eligibility for the concessions. This is because trusts do not own assets for their own benefit. These amendments have effect for capital gains tax events happening after 7.30pm (AEST) on 10 May 2011.

In particular, the amendments ensure that the provisions concerning absolutely entitled beneficiaries, bankrupt individuals, security providers and companies in liquidation interact appropriately with the capital gains tax provisions and with the connected entity test in the small business entity provisions. These changes apply at the option of taxpayers from the 2008-09 income year, and automatically from Royal Assent.

Consequential impacts on the Wine Equalisation Tax Act 1999 through the operation of the changes to the connected entity test apply to wine producers from the first financial year after the amending legislation received Royal Assent.

Legislation and supporting material

The following legislation received Royal Assent on 29 June 2013:


Administrative treatment

The ATO accepted tax returns as lodged during the period up until the law change was passed by Parliament. Past year assessments were not reviewed until the outcome of the amendments were known.

Now that the new law is enacted, those taxpayers who:

  • lodged in accordance with the changes do not need to do anything more
  • did not lodge in accordance with the changes should seek an amendment and if
    • a reduction in liability results, interest on overpayment will be paid where applicable
    • an increase in liability results, no tax shortfall penalties will be applied and any interest accrued will be remitted to the base interest rate up to the date of enactment of the law change
    • in addition, any interest in excess of the base rate accruing after the date of enactment will be remitted where taxpayers actively seek to amend assessments within a reasonable timeframe after enactment.
End of attention
    Last modified: 24 Aug 2013QC 24342