It is important for many reasons to have a suitable business structure that minimises any risk. These reasons include:

  • Asset protection
  • Tax minimisation
  • Ease of succession planning
  • Tax minimisation of sale
  • Proprietor Remuneration
  • Superannuation
  • Wealth creation
  • Asset protection

The most appropriate structure for a business may change over time. A business may have chosen an initial legal structure to later find that it is unnecessarily complex.  In addition, where a restructure requires business assets to be transferred from one entity to another, such as from a company to a trust, significant tax liabilities may occur. The impact of these liabilities on cash flow and available capital may create an impediment to restructuring.

We have extensive experience in restructuring a business into a more appropriate legal structure that may help a business to continue and grow, to avoid unnecessary compliance costs resulting from using overly complex structures, or to adapt to current conditions.

The need to restructure may arise from many areas including:

  • Economic or industry downturn
  • A business partner break up
  • Serious management issues
  • Increased unexpected profits
  • Significant decreases in profits
  • Business expansion into a new industry
  • Business expansion into a new location
  • Flawed business model
  • Marital break down
  • Change in the income tax legislation
  • Change in the Corporations Act
  • Other reasons

1. Our company has over 35 years’ experience advising clients on changes to successfully convert sole trader, partnerships and trust structures to company structures and to work with legislation that currently allows CGT (Capital Gains Tax) roll-over relief.

2. There are “Small Business Restructure Rollover” amendments, effective 1st July, 2016, that make it easier for small business owners to restructure their businesses by allowing them to defer gains or losses that would otherwise be realised when business assets are transferred from one entity to another. The new exposure draft extends relief to the transfer of trading stock, revenue assets and depreciating assets.

The rollover relief provides small business with an opportunity to move away from overly complex structures to avoid compliance costs or to move to a more appropriate structure which better suits their current circumstances or conditions.

We can cost effectively provide advice on how to select the most suitable and relevant structure to take account of the stage in the life of the business without being inhibited by certain tax costs.

Another important consideration in restructuring is the Family Trust Election (FTE). We can advise on this requirement for Non-fixed/ discretionary Trusts aiding a smooth transition.

We are dedicated to achieving the very best results for you with respect to a restructure. This is achieved through our knowledge of the current and proposed legislation coupled with our wide ranging and extensive experience in Business Structuring and Restructuring.