The Coalition Government has today introduced in Parliament a Bill to enable Australian small businesses to change their legal structure without attracting a capital gains tax (CGT) liability at that time.
Minister for Small Business and Assistant Treasurer Kelly O’Dwyer said this final piece of legislation completes the Government’s record $5.5 billion Growing Jobs and Small Business package.
“This Bill will reduce risk and complexity and make it easier for businesses to grow,” Minister O’Dwyer said.
“Small business owners who find they are using a legal structure that does not suit their needs will no longer be stuck with that structure. This will allow them to restructure their business without incurring an immediate CGT liability.
“This is another example of the Government reducing the burden of unnecessary red-tape on small businesses and aligns with the findings of the Board of Tax’s Review of Impediments Facing Small Business.
“The Government’s 2015-16 Budget Growing Jobs and Small Business package also includes tax cuts for all small business; immediate deductibility of all eligible assets costing less than $20,000; and immediate deductibility of professional expenses for new small businesses.
“These measures complement the Government’s suite of tax and business measures announced in the National Innovation and Science Agenda.”
“The Coalition Government is creating the right conditions for Australian small businesses to thrive, encourage employers to create new jobs, and make a continued significant contribution to the economic wellbeing of our nation,” Minister O’Dwyer said.