Recent changes to capital gains tax legislation will improve the certainty for Aboriginal and Torres Strait Islander organisations transferring their incorporation to the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
In the 2010-11 Budget the Australian Government announced capital gains tax (CGT) roll-over relief for certain Aboriginal and Torres Strait Islander corporations.
The changes were introduced as part of the Tax Laws Amendment (2011 Measures No. 9) Act 2011, which received Royal Assent on 21 March 2012.
CGT roll-over relief has now been extended to include transfers of incorporation by Aboriginal and Torres Strait Islander organisations to the CATSI Act. Previously the relief only applied to a transfer of incorporation to the Corporations Act 2001.
There is also provision for roll-over relief when an incorporated body is to be wound up and then subsequently reincorporated under the CATSI Act.
The changes are retrospective and apply from 7.30 pm (AEST) on 11 May 2010.
More information about capital gains tax
A brochure, Be smart about tax… and keep your corporations strong is available from the Australian Tax Office.
Corporations seeking to take advantage of the CGT roll-over relief should seek professional advice.
3 April 2012
Media contact
Christa de Jager
(02) 6146 4737
Ref: ORIC MR1112-31