THE Federal Government has announced measures to improve the so-called Simplified Tax System (STS) and foreshadowed other changes to further improve the tax system.
The latest change provides roll-over relief where there is a change in the partners of a small business, including a farm business.
This often happens when new family members are introduced into a family business or when an existing partner retires.
Roll-over relief will remove this taxing point so that a taxable gain will only arise when the business ultimately disposes of its assets.
CPA Australia senior tax counsel Paul Drum welcomed the changes, which he said rectified an oversight in the drafting of legislation.
CPA Australia has also announced that it expects further changes as a result of work by the ATO Tax Practitioner Forum.Specific measures considered included de-mergers, value shifting, consolidation and the simplified imputation system.