Document ID: chunk:federal_register_of_legislation:C2016A00018:clause:1_1:p1
Version: federal_register_of_legislation:C2016A00018
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/5)
Character Range: 2176–5118

1  At the end of Division 328
Add:

Subdivision 328‑G—Restructures of small businesses

Guide to Subdivision 328‑G

328‑420  What this Subdivision is about
      There are tax‑neutral consequences for a small business entity that restructures the ownership of the assets of the business, without changing the ultimate economic ownership of the assets.

Table of sections

Object of this Subdivision
328‑425 Object of this Subdivision

Requirements of a roll‑over under this Subdivision
328‑430 When a roll‑over is available
328‑435 Genuine restructures—safe harbour rule
328‑440 Ultimate economic ownership—discretionary trusts
328‑445 Residency requirement

Consequences of a roll‑over under this Subdivision
328‑450 Small business transfers not to affect income tax positions
328‑455 Effect of small business restructures on transferred cost of assets
328‑460 Effect of small business restructures on acquisition times of pre‑CGT assets
328‑465 New membership interests as consideration for transfer of assets
328‑470 Membership interests affected by transfers of assets
328‑475 Small business restructures involving assets already subject to small business roll‑over

Object of this Subdivision

328‑425  Object of this Subdivision
  The object of this Subdivision is to facilitate flexibility for owners of small business entities to restructure their businesses, and the way their business assets are held, while disregarding tax gains and losses that would otherwise arise.

Requirements for a roll‑over under this Subdivision

328‑430  When a roll‑over is available
 (1) A roll‑over under this Subdivision is available in relation to an asset that, under a transaction, an entity (the transferor) transfers to one or more other entities (transferees) if:
 (a) the transaction is, or is a part of, a genuine restructure of an ongoing *business; and
 (b) each party to the transfer is an entity to which any one or more of the following applies:
 (i) it is a *small business entity for the income year during which the transfer occurred;
 (ii) it has an *affiliate that is a small business entity for that income year;
 (iii) it is *connected with an entity that is a small business entity for that income year;
 (iv) it is a partner in a partnership that is a small business entity for that income year; and
 (c) the transaction does not have the effect of materially changing:
 (i) which individual has, or which individuals have, the ultimate economic ownership of the asset; and
 (ii) if there is more than one such individual—each such individual's share of that ultimate economic ownership; and
 (d) the asset is a *CGT asset (other than a *depreciating asset) that is, at the time the transfer takes effect:
 (i) if subparagraph (b)(i) applies—an *active asset; or
 (ii) if subparagraph (b)(ii) or (iii) applies—an active asset in relation to which subsection 152‑10(1A) is satisfied in that income year; or
 (iii) if subparagraph