We grow and so do our businesses. With the latest changes as of 1st July, 2016, now may be the perfect time to take a look at your business structure and make sure it’s still appropriate for your needs.
Growing businesses are a bit like hermit crabs. As they grow, their shells become less comfortable and eventually, the crabs need to move into a bigger shell.
Similarly, a growing business may need to restructure from time to time.
Here are just some of the reasons you may want to do that:
- You want to grow, innovate or branch out into other markets
- You want to enable the business to adapt to changing conditions
- You want to reduce administrative and compliance costs or remove your cash flow restraints
Here’s the thing… Up until the 1st of July, 2016, your options of changing business structures without adverse tax implications were limited.
Thankfully, the Australian Government has recognised these limitations and introduced a number of favourable changes.
In the cases of genuine restructure of existing business, the Government changed its rules to reduce or eliminate adverse tax implications when transferring depreciating assets, as well as stock and debtors to other structures.
They have also removed the Capital Gains Tax on transferring assets for restructuring reasons.
Needless to say, strict conditions apply when taking advantage of these changes.
So if you feel like the current shell of your business is not a good fit anymore, talk to us today.
We are the small business specialists and can show you the shells that may just be the perfect new home your growing business.