Following the Government's announcement in the Budget that it will amend the law to deal with the CGT treatment of Earnout arrangements, the Assistant Treasurer released a Treasury consultation paper which sets out the proposed changes and seeks feedback on these proposed measures. This presentation covers:
- what the Government proposes in its consultation paper
- when will the ‘look through' approach apply, and when will it not apply?
- what is a ‘standard earnout' arrangement and a ‘reverse earnout' arrangement, and how will they be treated?
- how to deal with the retrospectivity of proposed changes
- interaction between the proposed changes and the CGT discount, the CGT small business concessions, and consolidations.