Explanatory Memorandum
(Circulated by authority of the Minister for Small Business and Assistant Treasurer, the Hon Kelly O'Dwyer MP)Chapter 2 Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Tax Laws Amendment (Small Business Restructure Roll-over) Bill 2016
2.1 This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
2.2 This Bill amends the Income Tax Assessment Act 1997 to provide greater flexibility for small businesses to change their legal structure.
2.3 The amendments make it easier for small business owners to restructure by allowing them to defer gains or losses that would otherwise be made from transferring business assets from one entity to another as part of a genuine restructure.
2.4 The new small business roll-over is in addition to roll-overs currently available where a sole trader or partner in a partnership transfers assets to, or creates assets in, a company in the course of a business restructure.
Human rights implications
2.5 This Bill does not engage any of the applicable rights or freedoms.
Conclusion
2.6 This Bill is compatible with human rights as it does not raise any human rights issues.