Following continued advocacy efforts on behalf of our members, Chartered Accountants Australia and New Zealand (CA ANZ) welcomes Federal Parliament’s decision today to amend the commencement date for proposed changes to the Small Business Capital Gains Tax concessions.
The Senate has passed a bill to amend the start date from 1 July 2017 as per the Budget announcement to 8 February 2018.
“CA ANZ has been strongly advocating for an amendment to the start date for changes to the small business capital gains tax concessions and welcomes this development,” said Michael Croker, CA ANZ Australian Tax Leader.
“Under the legislation originally introduced to Parliament, some taxpayers were put in a difficult position as they had entered into agreements in good faith, and sold or entered into agreements to sell, interests in entities on the basis that they qualified for the concessions but would not now do so.
“The change of start date rectifies this position which is only fair and reasonable given the lack of clarity in the announcement, and the delay between the announcement and the release of the exposure draft.”
As outlined in CA ANZ’s submission in February 2018, “the measures contained in the exposure draft are extraordinarily complex. More importantly, in our view they go beyond what taxpayers could reasonably have expected from the Budget announcement designed to address ‘integrity’ concerns”.
“A number of our members were required to provide advice to their small business clients regarding the sale of a business in an atmosphere of great legislative and policy uncertainty,” said Croker.
“Operating in such conditions causes hardships and can often result in unexpected outcomes. Such results are particularly devastating for small businesses who already have relatively high compliance burdens and have significant time and resource constraints.
“CA ANZ commends the Federal Parliament for recognising that businesses, especially small businesses, need certainty in order to operate and for removing the retrospective application of these changes.
CA ANZ’s submission on the exposure draft
CA ANZ’s submission on the exposure draftFind out more