Tuesday, May 29, 2018

328-G Rollovers – what’s exempt and what’s not

As set out in earlier posts, and with thanks to the Television Education Network, today’s post considers the above mentioned topic in a ‘vidcast’ at the following link - https://youtu.be/zxI128AOaaE

As usual, an edited transcript of the presentation for those that cannot (or choose not) to view it is below –

The 328-G rules allow taxpayers to basically roll-over any otherwise taxable asset as part of the concessions. In other words, it is not just capital gains tax assets, it can be trading stock, depreciating assets, and assets on revenue account.

Any tax that would otherwise be triggered in these areas is ignored as part of the 328-G rules. However, the concessions only operate at a federal revenue level, and even then, not across the board.

For example, if you've got GST applicable, which invariably you will, because you'll be a small business turning over less than $2 million, you need to have a strategy to deal with that as GST is not exempted under 328-G.

Stamp duty, as it is state based, is not dealt with at all under 328-G, thus you will need to have a strategy to deal with that.

Land tax is not addressed.

Similarly, payroll tax and any other state taxes are not dealt with at all under the 328-G provisions.