Submission:

Small business capital gains tax concessions exposure draft legislation

01 March 2018

BDO welcomes the opportunity to provide feedback in response to the Improving the integrity of the small business capital gains tax concessions exposure draft legislation released on 8 February 2018

Our submission contains the following recommendations:

  • The legislation needs to be better targeted, or the Government needs to justify the reduction in scope of the concessions
  • The proposed changes should not be retrospective in nature and instead of applying from 1 July 2017 should apply from 1 July 2018 to provide small businesses with time to prepare for them
  • The requirement for the Object Entity to meet the MNAVT or small business entity test should be replaced with the simpler requirement that the relevant CGT asset have a sufficient link to the relevant small business carried on by the taxpayer
  • The proposed changes should be less complex and align with the policy intent.

These and other issues are expanded upon in the appendix to the submission.