Tax and FTB changes now law

March 30, 2016

 

A number of measures are now law after a handful of Bills have been passed by Parliament.  below.

 

Small business CGT rollover exemption

 

From 1 July 2016, small businesses will be able to change their legal structure without triggering a CGT liability when transferring business assets to the new entity.

 

The transfer needs to be part of a genuine restructure and the exemptions apply to defer capital gains provided there is no change in the ultimate economic ownership of the assets (ie owners of new entity are the same).

 

Implications: This is good news for small business owners who might initially choose a legal structure that no longer suits when the business becomes more established. They will be able to change to a new legal structure without triggering CGT implications. This does not allow them to change underlying ownership as part of the restructure.

 

Family Tax Benefit (FTB) Part A changes

 

The rules for Family Tax Benefits (FTB) are being tightened again this year. The following changes will be made to FTB Part A:

  • From 1 January 2016, FTB Part A will only be paid for up to six weeks of overseas travel in any 12 month period, and

  • From 1 July 2016, the FTB Part A large family supplement will be abolished so that families receive just a per child rate.

Clients will need to budget or reduce costs to make up for the reduction or loss of their FTB payments.

Please reload

Featured Posts

Robert Reid of SWS joins COMPASS

October 18, 2019

1/6
Please reload

Recent Posts

October 18, 2019

October 18, 2019

October 18, 2019

Please reload

Archive