Is it time you considered the structure of your business?

The ATO’s Small Business Restructure Rollover gives you flexibility, as an owner of a small business entity, to restructure your businesses and the way your business assets are held while disregarding tax gains and losses that would otherwise arise.

There is a range of small business rollovers already available where you – as an individual, trustee or partner – transfer assets to, or creates assets in, a company while incorporating your business. These rollovers include:

  • The transfer of assets or a business from an individual, trustee or partner to a wholly owned company (Division 122 rollovers).
  • The transfer of assets or a business from a trust to a company (Subdivision 124‐N rollover).
  • Where an interest holder exchanges shares in a company or units in a unit trust for shares in another company as part of a restructure (Division 615).

These rollovers deal with the transfer of assets to a company or deal with shares or interests in companies. However, they are limited as they only apply in the following cases:

  • When assets are transferred into companies (not where assets are transferred out of companies or between entities that are not companies).
  • When shares or interests in companies and trusts are exchanged for shares in companies.

The Small Business Restructure Rollover, on the other hand, is not restricted to the transfer of assets to companies. While this rollover can also be used where business assets are transferred to a company, it also allows for the transfer of assets from:

  1. Individual(s) to trusts or companies
  2. Partnership assets by partners to trusts or companies
  3. Company assets to trusts
  4. Company assets to individuals and partnerships
  5. Trust assets to beneficiaries of trusts
  6. Transfer of assets from one trust to another.

Is it time you considered whether your current business structure is right for you?

It may have been up until this point, however, circumstances do change.

For a complimentary 30 mins discussion, you will be better informed to make the decision.

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Tony Dimitriadis

Tony has 33 years’ experience as an accountant, and 13 years’ experience as a CPA. His first 18 years’ experience involved financial, management and operational accounting roles at a senior management level, in the security, transport, and forensic accounting industries
Tony Dimitriadis
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