Recorded Webinar: Using Small Business Restructure Rollover for Business Succession

When a family business is held in the family’s discretionary trust, what tax effective options are available to restructure the business for business succession purposes? This session explains how the small business restructure rollover (SBRR) can be used for in this way. It covers:

• Understanding the SBRR:

  • what assets are covered by a SBRR?

  • who is eligible for the rollover?

  • what are the consequences of the SBRR for the transferor?

  • what are the consequences of the SBRR for the transferee?

• Using the SBRR:

  • what is a genuine restructure?

  • when can you use the safe harbour rules?

  • when is there a change to ultimate economic ownership?

• Objectives in using the SBRR – what does the law allow and what does the ATO accept?

  • getting the business ready for a sale or a management buyout

  • passing the business to the next generation

  • separating the business out from assets in order to pass the business to one sibling to the exclusion of others

• Exploring the SBRR:

  • Richard and Marie Dalton have been running a pub through the Dalton Family Trust for over 30 years. In the last 10 years, their oldest daughter Leonie has become increasingly involved in the business as well; their two other children (Tricia and John) are not involved. Richard and Marie are looking at separating out the publican business from the family trust, with a view to eventually passing the business to Leonie

  • can the SBRR provide a tax effective solution?