As Grant Thornton argued in its recent Tax White Paper submission , there should be no Capital Gains Tax consequences of asset sales within family groups. At the moment these transactions are taxed in the same way as buy-outs by multinational conglomerates. The result is a harsh and onerous impost which impacts on the ability of families to compete. Alan Kohler from Business Spectator agrees.
The Productivity Commission should clearly pick up this theme and suggest the targeted removal of CGT on transfers of businesses within families.More than anything, the effect of CGT on transfers will be to kill off multi-generational family businesses, which are one of the foundations of business life in Australia.