Minister for Revenue and the Assistant Treasurer
27 January 2006 - 3 December 2007
Wednesday 14th February 2007
Amendments to the Capital Gains Tax Scrip for Scrip Roll‑Over
The Minister for Revenue and Assistant Treasurer, Peter Dutton MP, announced today that the Government will amend the Income Tax Assessment Act 1997 to extend the capital gains tax (CGT) scrip for scrip roll-over to membership interests in companies limited by guarantee that are medical defence organisations.
The amendments will ensure that the CGT scrip for scrip roll-over is available to post‑CGT membership interests in a company limited by guarantee if such interests are replaced with membership interests in another company limited by guarantee and both companies are medical defence organisations.
The Review of Business Taxation chaired by Mr John Ralph AC recommended the scrip for scrip roll‑over in 1999 in order to achieve a better allocation of the nation’s capital resources by removing CGT as an impediment to mergers and takeovers.
These amendments will ensure that CGT need not be an impediment to mergers of medical defence organisations.
The amendments will apply to CGT events happening on or after 14 February 2007.
Legislation giving effect to this announcement will be introduced as soon as practicable, following consultation with industry on the design and the implementation of the amendments.
Brad Emery 02 6277 7360 – 0414 225 638