Changes to Rollover Relief for the Investor

Are you?	- A shareholder?
At a glance:	- There may be some changes to the current legislation governing scrip-for-scrip rollovers in respect of takeovers and mergers.
You should:	- Consider whether the scrip-for-scrip rollover applies to shares and units you own. - Contact us if you require any clarification or advice.

1. The Government intends to make it easier for shareholders to defer capital gains tax in relation to takeovers and mergers.
   
   
2. Generally, a scrip-for-scrip rollover allows a taxpayer exchanging shares in one company for shares in another company as part of a takeover or merger to defer the realisation of any capital gains from this transition [click here for more information].
   
   
3. Under the current law, a takeover or merger arrangement must meet a number of requirements before shareholders can qualify for a rollover of capital gains.
   
   
4. The Government is now looking to align the Corporations Act 2001 with the scrip-for-scrip rollover provisions contained in the Income Tax Assessment Act to allow for better financial transitions for shareholders.
   
   
5. Investors interested in making submissions can do so by visiting the treasury website at www.treasury.gov.au

Remember:

- You can make a submission in relation to the operation of the scrip-for-scrip rollover provisions for investors.