Strengthening Australia’s Foreign Investment Framework

From 1 December 2015 all residential real estate functions will be transferred to the ATO which will enforce compliance with the Foreign Acquisitions and Takeover Act.

Stricter penalties will be imposed on an individual third party that assists a foreign investor to breach the act as well as the introduction of an application fee on purchase of assets.


No new superannuation taxes or any new measures were announced, including any changes to the limited recourse borrowing arrangements or taxing of pensions.

The budget does include certain marginal measures that were previously advised which is an increase in the supervisory levies starting from the 2015-2016 year.


Capital Gains Tax roll-over for changes to entity structure

Small business with an annual turnover of less than $2million can change legal structure without attracting a CGT liability at that point.

This measure will apply from the 2016-2017 income year.

CGT roll-over relief is currently available for individuals who change to a company structure but all other entity type changes have the potential to trigger a CGT liability.  This measure recognises that new small business might choose an initial legal structure that they later find does not suit them when the business is more established.


Submitted By:   Danni Bouakeo – Supervisor

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