Last year’s legislative changes to the small business CGT concessions have added considerable complexity, with owners now having to work through 36 pieces of law to determine their eligibility, an expert has said.
In October 2018, the government passed the Treasury Laws Amendment (Tax Integrity and Other Measures) Bill 2018, which, among other things, introduced additional conditions on small businesses to qualify for CGT concessions on capital gains.
These changes took effect retrospectively from 8 February 2018.
According to My Business sister publication SMSF Adviser, Darren Wynen, the chief executive of tax and super firm Insyt, said that while the CGT concessions are a good opportunity for business owners to get extra money into their super, it is a complex situation.
“If you’ve got an individual selling shares in a company or units in a unit trust, they’ve now introduced rules that you need to pass as a shareholder which are really complex,” Mr Wynen explained.
“There are now 36 pieces of law that you need to work through in order to assess whether those shares can potentially qualify.”
More details can be found in the full story on the SMSF Adviser website.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.