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Income Tax Legislation Planning Idea Planning Stuff Rulings

More on the Small Business Rollover

Yes I am way too excited about this… But the Commissioner has produced his first two bits of guidance on using this rollover. In the first he looks at the consequences of using the rollover. This is all pretty simple stuff (cost base transfer…) but the final example has the trick in it… Example 6 – […]

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Income Tax Legislation Planning Idea Planning Stuff

Small Business Restructure Rollover and Stamp Duties

I have discussed this rollover before so if you have no idea what I am talking about have a look at these links first. The rollover is very broad, applying to CGT assets, revenue assets, trading stock and depreciable assets. But it does not cover all the taxes that may be rolled over under these […]

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Income Tax Legislation Planning Idea Planning Stuff

The Small Business Restructure Rollover is now before the Parliament!

Its almost law!!!! Under this Bill, from 1 July 2016, small businesses can roll-over “active assets” that are CGT assets, trading stock, revenue assets and depreciating assets as part of a genuine restructure of a small business from one entity to another. In Summary, here is how it works: Subdivision 328-G creates an optional roll-over […]

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Income Tax Legislation Planning Idea Planning Stuff

Newish Tax Concession For Farmers

The Government has released draft legislation that makes certain tax concessions available to farmers even better than they currently are. In the draft legislation, the Government proposes to make the following changes to the Farm Managed Deposit scheme (and a reminder for those city slickers, the FMD scheme allows farmers to claim a tax deduction […]

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Income Tax Planning Idea Planning Stuff Tax Policy

And so there is another scheme to avoid Division 7A

A few weeks after 4 December 1997 I was told about my first Division 7A avoidance idea. And by mid 2008 the first amendment to Division 7A came about to undo this idea (the old section 109UB to stop trusts loaning corporate UPEs to owners). Since then I have been asked lots of times to […]

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Budget Income Tax Planning Idea Planning Stuff Tax Policy

More Wow!

I was thinking about yesterday’s post and I have a strange thought. If I have a CGT asset owned by a company I am not going to get the CGT discount. But if I use the rollover from yesterday’s post to move the CGT asset to a trust and sell it the next day I […]

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Budget Income Tax Legislation Planning Idea Planning Stuff

Wow! I mean wow!!! Like wow!!!

In the May budget the government promised a new rollover for small businesses that allowed them to change their structure without (federal) tax effects. The Treasury has released a draft of this rollover and it is amazing. Listen to this… You can roll small business assets into a new structure if ultimate economic ownership of the […]

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Income Tax Planning Idea Tax Policy

The negative gearing myth exposed

If we stopped negative gearing on 1 July 2015 it would reduce the budget deficits across the next four years by $2.94 billion. Sounds amazing… The budget deficits over the next four years are well over $80 billion combined! Can we please accept that proposed changes to super by the Opposition ($1.2 billion a year […]

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Planning Idea Super

Superphobia…

Do you have clients who want their money now? “I wont live long enough to get my super!” They want the whole 100% in their hand, not just 91.53% ($91.53 + (9.25% of $91.53) = $100)… Well maybe you can legally help them… In ATO interpretative decision ATOID 2015/9 the Commissioner considers whether there are SG obligations […]

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Cases Planning Idea Planning Stuff

Part IVA and the Small Business CGT Concessions

I have been fearing this day for some time. A day when the Commissioner applies the general anti avoidance provision in Part IVA to a taxpayer who arranges a sale of a business to make the most of the Small Business CGT Concessions. We all know how this is done. “Just before” the sale we […]