New draft legislation targeting small business CGT concessions released
The government has released exposure draft legislation aimed at improving integrity measures to the small business CGT concessions, altering the eligibility of assets.
The small business CGT concessions measure was announced in the budget, as part of the ‘tax integrity’ package.
The government has now proposed that from 1 July 2017, the small business CGT concessions can only be accessed in relation to assets used in a small business or ownership interests in a small business.
“This is an integrity rule designed to prevent taxpayers from accessing these concessions for assets which are unrelated to their small business, such as by arranging their affairs so that their ownership interests in larger businesses do not count towards the tests for determining eligibility for the concessions,” said Treasurer Scott Morrison in a statement.
“It will ensure that these important concessions continue to benefit those who need them most, hard-working small businesses.
“These concessions will continue to be available to genuine small business taxpayers with an aggregated turnover of less than $2 million or business assets less than $6 million.”
The exposure draft legislation and explanatory material are available on the Treasury website. Interested stakeholders are encouraged to provide their views by Wednesday, 28 February 2018.