Example Jack and Jill are husband and wife, and are the only shareholders in Pail Co, with each owning one share with a cost base of $1. Pail Co has successfully carried on a water hauling business. The only capital gain tax (CGT) asset is the goodwill of the business currently worth $30,000. Pail Co is a small business for the income year. When setting up their business, Jack and Jill did not seek any professional advice and did not consider the compliance costs of operating their business through a company. They now wish to run the hauling operation directly as partners. Under the old law, the company would have been deemed to have transferred the goodwill at its market value of $30,000 and with a cost base of $0. As a result, a gross capital gain of $30,000 would be made and CGT would therefore be payable by the company in the year in which the restructure took place. Using the new small business restructure rollover, Pail Co can transfer the goodwill to Jack and Jill as assets of the Jack and Jill partnership. Pail Co is taken to have transferred the goodwill to Jack and Jill in equal shares for $0, and Jack and Jill are taken to have acquired their shares of the goodwill for this amount. Therefore, no capital gains tax is payable by Pail Co. As a result of the new law, Jack and Jill have been able to change their operating structure without any adverse tax consequences. The business structure through which you operate can have a profound impact on your financial and other affairs. Thanks to this new law, small business owners now have the ability to change their structure tax-free (although stamp duty costs will still need to be considered). TIMe MaGazIne naMes FINANCE HoloGIC’s 3D MaMMoGrapHy as THe MosT reMarkable HealTH aDvanCe In 2014 3D mammography is the most advanced technology for early detection of breast cancer 3D Mammography compared to normal mammography is: • 27% more effective at detecting all breast cancers • 41% more effective at detecting invasive breast cancers The Women’s Imaging Centre is the only facility on the Gold Coast to offer the Hologic 3D mammography service. south Coast radiology provides on-site pre-operative imaging and localisation procedures to complement the world class surgery provided by breast surgeons at pindara private Hospital. For expert diagnostic breast imaging, choose south Coast radiology at pindara Hospital & The Women’s Imaging Centre South Coast Radiology, Pindara Hospital ph: (07) 5597 0677 The Women’s Imaging Centre, Southport ph: (07) 5564 0851 www.scr.com.au www.twic.com.au If you would like to discuss the best business structure for your needs or how you can take advantage of this new law, contact Darren Hagarty at PT Partners (07) 3 808 4499. Thanks to this new law, small business owners now have the ability to change their structure tax-free 112 Pindara Magazine 2016
Pindara Private Hospital Magazine - Issue Seven
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