Loading
EllaZed(Newbie)Registered Tax Professional
4 Aug 2025

I have a trust which has myself, my sister and our companies as the beneficiaries

We are wanting to change the structure to a company to plan for future succession. We opened a company back in March 25 to do this, and then began using that company for any new finance for new equipment, but were told by another income tax agent that to take up the rollover relief the company had to be brand new with no transactions in it to do it. The research I have done tells me this is not the case. I am really confused now with 2 agents telling me different things. the agent that set this up gave no guidance on the rules or what had to be done to make this happen - so we hadnt taken action to move the transactions or trading of the business over as yet - but are now told that we cant and we need another fresh company to do this.

I cannot find any rules relating to the timing or any of this to help.

807 views
3 replies
807 views
3 replies

All replies

ATO Certified Response
KaraATO(Community Support)Community Support
ATO Certified Response7 Aug 2025

Hi @EllaZed,


The Small Business Restructure Rollover (SBRR) lets small businesses move assets from one business structure to another like from a trust to a company without paying tax on the transfer.


You can use this rollover if:

  • Your business has less than $10M in total yearly turnover.
  • You’re moving active assets used in the business, like:
    • Property or equipment (capital gains tax assets).
    • Trading stock.
    • Revenue assets.
    • Depreciating assets (like machinery or vehicles).
  • The move is part of a real business plan, not just to save tax.
  • The people who own the business stay the same after the move.
    • If more than one person owns it, each person’s share must stay the same.


This applies to trust entities as well. For discretionary trusts, the same individuals must continue to benefit economically.


A Family Trust Election (FTE) can help meet this test if all beneficiaries are part of the same family group.


What matters is that the restructure meets the eligibility criteria and is part of a genuine business plan, not necessarily that you must have a new company to be eligible.


You’ll need to document the purpose of the restructure, ensure ownership continuity, and lodge the rollover election with your tax return.


It might be best to apply for a private ruling though.


You'll get a legally binding answer and clarity. If for whatever reason, it's not eligible for the rollover the transfer of assets may trigger Capital Gains Tax (CGT) or other tax consequence.

JohnBond(I'm new)I'm new
20 Oct 2025

I own 100% of the shares of my company in my own name. My company owns a motel and runs the motel business. The annual turnover is less than $10M.


Can I transfer my company shares from my own name to a discretionary trust, make a family trust election, make myself the appointor of the trust and be the only primary beneficiary of the trust?


Does this satisfy the Small Business Restructure Rollover (SBRR)?


Featured articles

Compare your small business performance with industry benchmarks

7 Apr 2026 · 2 min read time

Tax tips for social media influencers and content creators

22 Apr 2024 · 3 min read time

Working for a food delivery app

15 Apr 2026 · 4 min read time

Top liked users

  1. Taxduck

    (Taxicorn)

    327 likes

  2. PayrollDeanne

    (Taxicorn)

    318 likes

  3. Bruce4Tax

    (Taxicorn)

    192 likes

  4. YellowPotato

    (Taxicorn)

    145 likes

  5. Peter_Clyne

    (Superuser)

    101 likes

Top contributors

  1. PayrollDeanne

    (Taxicorn)

    1328contributions

  2. Taxduck

    (Taxicorn)

    1311contributions

  3. YellowPotato

    (Taxicorn)

    580contributions

  4. Bruce4Tax

    (Taxicorn)

    526contributions

  5. YEP

    (Devotee)

    280contributions

Loading
Accessing the roll over relief under the SBRR | ATO Community