Full Federal Court draws schemes (and nothing else?) out of top hat, in AusNet decision

This decision will provide greater clarity for existing groups of entities that may be considering a reorganisation, such as a ‘top hatting’ restructure or demerger, as detailed by Kristie Schubert, Matt Ervin, Shirley Lam, James Macky, Demos Deliyannis and William Ho.

The Full Federal Court, 7 March 2025, handed down its decision in AusNet Services Limited v Commissioner of Taxation [2025] FCAFC 21, concerning whether Division 615 of the Income Tax Assessment Act 1997 (Cth) (ITAA97) applied to AusNet's acquisition of shares in AusNet Services (Distribution) Limited. Division 615 provides 'rollover' relief by enabling a member of a company or trust to disregard a capital gain or capital loss from a share or unit that is disposed of, redeemed or cancelled a...

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Authors: Kristie Schubert, Matt Ervin,

Published Date: 02 April 2025