COVID-19: New M&A tax depreciation ‘sleeper’

Tim Lynch & Andrew Bath discuss legislation introduced by the Federal Government in response to COVID-19.

Among the amendments giving effect to the Federal Government’s Tranche 1 and Tranche 2 stimulus measures, was an interesting amendment contained in the Coronavirus Economic Response Package Omnibus Act 2020.This seemingly innocuous addition to section 705-45 of the Income Tax Assessment Act 1997 potentially has a far reaching and non-COVID-19 impact.Taking a step back for a moment, where an entity joins a tax consolidated group, or a tax consolidated group is formed, the tax cost of certain a...

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Authors: Tim Lynch, Andrew Bath

Published Date: 08 April 2020