The Government today introduced amendments to the capital gains tax scrip for scrip

rollover relief provisions in the law.

The implementation of scrip for scrip rollover relief is a key business tax measure

which removes a major impediment to mergers and takeovers. It will also enable start up

and innovative enterprises to undergo capital restructuring during the development phase

without incurring a tax liability.

The amendments introduced today will put beyond doubt that rollover relief applies to

schemes of arrangement and cases involving a cancellation and reissue of equity, in

addition to transactions involving a direct exchange of equity.

The amendments will also ensure that the rollover applies where a subsidiary company

makes the takeover offer using its parent’s scrip (so called ‘downstream’ acquisitions).

The amendments will apply from 10 December 1999, the commencement date of the

scrip for scrip rollover.

CANBERRA

13 April 2000

John Anderson

( (02) 6263 4307