Bill
Tax and Superannuation Laws Amendment (2015 Measures No. 6) Bill 2015
passed, as at 2016-02-25. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2015-12-03
- second reading — 2015-12-03
- second reading — 2016-02-04
- second reading — 2016-02-04
- third reading — 2016-02-04
- introduced — 2016-02-04
- second reading — 2016-02-04
- second reading — 2016-02-22
- second reading — 2016-02-22
- third reading — 2016-02-22
- passed — 2016-02-22
- royal assent — 2016-02-25
Divisions
No divisions recorded. Most questions are decided on the voices; this does not establish that a bill was unopposed.
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2015-12-03.
This bill would change how capital gains tax applies when businesses are sold with earnout arrangements, which are rights to future payments based on the asset's performance after sale.
It would ignore capital gains and losses from these arrangements, and instead treat the payments as adjustments to the sale price, affecting the proceeds and cost of the underlying asset.
The changes apply to deals made from 17 October 2007, but are optional and beneficial, so no taxpayer would be worse off due to the retrospective effect.
- Disregard capital gains and losses from look-through earnout arrangements.
- Treat earnout payments as adjustments to the proceeds and cost base of the underlying assets.
- Apply the changes retrospectively to transactions from 17 October 2007.
Businesses and taxpayers involved in the sale and purchase of businesses with earnout arrangements.
Sources
em
billhome
frl act