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Australian Small Business Restructuring Roll-over Bill Receives Royal Assent — Orbitax Tax News & Alerts

Australia's Tax Laws Amendment (Small Business Restructure Roll-over) Act 2016 received royal assent on 8 March 2016 following final passage by both houses of parliament on 29 February. The legislation enables small businesses (revenue < AUD 2 million) to defer the recognition of gains or losses that may arise from the transfer of active assets as part of a restructure of their business, including capital gains tax assets, trading stock, revenue assets and depreciating assets. A number of conditions for the deferral apply, including that the transfer does not result in a change in the ultimate beneficial ownership of the assets, and that each party to the transfer must be either a small business entity, connected or affiliated with a small business entity, or a partner in a partnership that is a small business entity.

The new rules will apply for transfers made on or after 1 July 2016. Click the following link for the text of the legislation as passed and the explanatory memorandum.