Peter Costello

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Capital Gains Tax - Rollover Of Assets From Trusts To Companies

NO.077

Capital Gains Tax - Rollover Of Assets From Trusts To Companies

Today the Government is announcing that the Income Tax Assessment Act 1997 will be amended, for asset transfers from 11 November 1999, to include a new capital gains tax (CGT) rollover. The new CGT rollover will be consistent with existing CGT rollover provisions, and will facilitate the transfer of assets from a fixed trust to a company, thereby increasing the commercial flexibility available in selecting an appropriate business form for the needs of business.

In broad terms, the new CGT rollover will be available where:

  • a fixed trust transfers all of its assets to a company and then ceases to exist;
  • the company is, or is similar to, a shelf company at the time of transfer;
  • the beneficiaries hold shares in the company in the same proportion as they held interests in the fixed trust; and
  • the fixed trust and company agree to the CGT rollover.

Legislation to implement this measure will be introduced into Parliament in early 2002.

MELBOURNE
5 October 2001

Contact:
Mike Buckley, Treasury (02) 6263 4413

5 Oct 2001

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