This subtopic sets out a broad overview of a number of key taxation issues relevant to corporate structures.

This first guidance note considers capital gains tax (CGT) rollover relief. In general terms, where a taxpayer disposes of an asset, unless one of the available exemptions applies, the disposition will be subject to CGT. Accordingly, where it is desired to transfer an existing business to a corporate structure, CGT might apply to the transfer of those assets to the corporate structure. There are, however, a number of "CGT rollovers" available which allow for any capital gain to be deferred, or in some cases, disregarded. This section sets out the general requirements of those rollovers which are likely to be relevant to existing business structures looking to adopt a corporate structure. This section also discusses a number of rollovers relevant to restructuring a corporate group including scrip-for-scrip rollover.

See CGT rollover relief.

This second guidance note sets out the availability of stamp duty relief in each of the Australian jurisdictions in the context of corporate restructuring. Many of the jurisdictions contain statutory provisions which allow for relief from stamp duty on a corporate restructure, although Tasmania and South Australia still only provide for ex gratia relief as at the date of this publication (the 2013-14 South Australian State Budget foreshadowed the introduction of legislative provisions to replace the ex gratia relief). Some jurisdictions also contain relief for "corporate consolidation" transactions, which in broad terms involves the interposition of an entity between a company and its existing shareholders.

See Stamp duties restructure relief.

The third guidance note sets out the requirements for "GST Groups". Where a corporate structure is adopted, the formation of GST groups brings with it the advantage of certain intra-group transactions being disregarded for GST purposes.

See GST Groups.

This fourth guidance note sets out the requirements for PAYG instalments. PAYG instalments are not limited to a corporate structure, although particular rules apply in the context of a tax consolidated corporate group. In general terms, taxpayers who meet certain threshold requirements in relation to business and investment income are required to submit income tax on an instalment basis. Those instalments will generally be due either quarterly or half yearly.

See PAYG instalments.

This fifth guidance note sets out the broad requirements of tax consolidation. In general terms, tax consolidation allows eligible wholly owned groups to be treated as a single entity for income tax purposes. Some of the significant benefits of tax consolidation include that a single tax return need only be lodged in respect of all entities in the group, and assets can be transferred between entities within the group without CGT consequences.

See Tax consolidation.

This final guidance note sets out the requirements of the R&D tax incentive. The R&D Incentive is only available to companies (including foreign resident companies). In broad terms, the incentive provides a tax offset for eligible R&D expenditure. In broad terms, a "tax offset" provides a dollar for dollar reduction in the amount of tax assessed to a taxpayer, as opposed to a "deduction" which reduces the amount of assessable income upon which tax is calculated.

See Research and development tax incentive.