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Consultation Paper - Improvements to The Capital Gains Tax Law: Certain Business Restructures

Date:

Tuesday, 11 May 2010

Content ID:

1800

Abstract:

On 11 May 2010, the Assistant Treasurer announced that Government would introduce legislation to amend the capital gains tax (CGT) provisions to improve the ability of businesses to restructure, applying to CGT events happening after 7.30 pm on 11 May 2010.

These amendments involve:

  • Extending the existing roll-over for the conversion of a body to an incorporated company to include incorporated bodies who convert to companies incorporated under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 and making the roll-over more flexible to better accommodate business practices;
  • Broadening access to additional CGT roll‑overs for Australian resident taxpayers holding interests in entities that restructure using a share or interest sale facility for foreign interest holders; and
  • Extending access to CGT demerger relief provisions so that demerger groups which include corporations sole and complying superannuation entities can benefit from the CGT demerger roll-over. 

The Assistant Treasurer also indicated that the Government would undertake consultation on the design and implementation of these measures and that a consultation paper would be released. This consultation paper forms the basis for consultation on this proposal and sets out, in broad terms, the way it may be implemented.

Making a submission

Interested parties are invited to comment on the design of the amendments as set out in the consultation paper. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Friday, 11 June 2010

Address written submissions to:
The General Manager
Business Tax Division
The Treasury
Langton Crescent
PARKES ACT 2600

Fax: (02) 6263 4352

Email: cgt_restructures@treasury.gov.au

For enquiries, please call Paul McMahon (02) 6263 3385.

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Consultation Paper  302.88kb
Summary of Consultation Process  103.21kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Consultation Paper  6,345.18kb
Summary of Consultation Process  876.27kb

Related Items:

Submissions: Improvements to The Capital Gains Tax Law: Certain Business Restructures - 9/07/2010

Treasury has received three submissions in response to its consultation on the policy design of Improvements to The Capital Gains Tax Law: Certain Business Restructures. One of these is a public submissions, and two are confidential submissions. The public submission is listed below and is accessible by selecting the author.

The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury.

Exposure Draft - Reforms to Capital Gains Tax to Make it Easier for Businesses to Restructure - 13/05/2011
The abstract for this content item contains formatting that cannot be displayed in this list. Please follow the hyperlink to the item for more detail.
Revised Exposure Draft - Share and Interest Sale Facilities for Foreign Interest Holders in a Restructure - 20/09/2011
The abstract for this content item contains formatting that cannot be displayed in this list. Please follow the hyperlink to the item for more detail.

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