Report introducing an asset merger roll over relief

In January 2016, the then Treasurer requested that the Board submit ideas that could be announced in the 2016-17 Budget in line with the Government’s plan to establish a strong national platform for jobs and growth.

In response, the Board submitted that the Government should ‘remove barriers to efficiency-driven non-cash business asset merger or swap restructures by providing income tax roll-over deferral relief’. The then Treasurer’s reply requested that the Board explore a proposal for asset swap and merger roll-over relief.

In particular, the then Treasurer requested that the Board consider technical and implementation issues that would need to be further examined, including the characterisation of assets, substantial interest requirements and the absence of stamp duty relief which could impact on the proposal’s success.

Working Group

The Board appointed a Working Group to develop this proposal. This Working Group was chaired by Board member Ann-Maree Wolff with assistance from Board member Craig Yaxley.

The Working Group also included:

  • Tax professionals with expertise in large business taxation, in particular Cameron Rider (PwC) and Ken Spence (Herbert Smith Freehills).
  • A tax professional with expertise in State and Federal taxation interactions, in particular Michael Perez (King & Wood Mallesons).
  • A tax professional with expertise in small business taxation, in particular Mark Molesworth (BDO).
  • Officials from Treasury and the Australian Taxation Office.

Board Report

The Board completed its report in February 2017. 

Government Response

On 12 December 2019 the Government announced the publication of the Introducing Asset Merger Rollover Relief report, noting it as a valuable contribution to public debate. The Government stated it will continue to consider the implications of the Board’s findings.

Further information

For further information about the Board’s work on the Board’s report introducing an asset merger roll over relief, please contact the Board of Taxation Secretariat at or 02 6263 4366.