What’s the Tax Consequences of Restructuring a Business?



Considering restructuring your small business and worried about what happens tax-wise?

Well, normally if you sell your business and its assets, you would have to pay income tax because your business has sold/transferred its assets. But when there is a transfer of assets to another entity in a small business of under $10 million revenue, then the ATO has a special restructure rollover  to allow a transfer of assets without incurring income tax.

Old tax laws meant that there could still be tax consequences on depreciating assets – but recently the ATO commissioner has remedied that. Now, the transfers of assets which are depreciated (e.g. a motor vehicle) do not incur any income tax.