Changes to support the measure to provide greater consistency in the scrip for scrip roll-over and the small business entity provisions

The Government announced in the 2012-13 Budget that it would make several changes to support the effective operation of the 2011-12 Budget measure providing greater consistency in the application of the scrip for scrip roll-over and small business concessions.

In particular the 2012-13 Budget measure will ensure that the provisions concerning absolutely entitled beneficiaries, security providers and companies in liquidation interact appropriately with the CGT provisions generally and with the connected entity test in the small business entity provisions.

This Proposals Paper sets out, in broad terms, how the measure may be implemented and will form the basis of consultation on the policy design of this measure.