A looming July 2027 deadline is pushing Australian business owners to review company structures that in some cases have not been looked at in decades.
Changes to the taxation of pre-CGT assets announced in the 2026-27 Federal Budget are prompting a surge in reviews of long-held company structures across Australia.
National insolvency firm Jirsch Sutherland is predicting increased demand for Members’ Voluntary Liquidations as business owners and their advisers assess whether structures established decades ago still serve their original purpose under the changing tax landscape. The businesses arriving at Peter Moore’s door are not in trouble. That is the first thing the Jirsch Sutherland Partner wants to make clear. “Importantly, the companies considering this option are typically financially healthy and solvent,” Moore said. “These are not distressed businesses. In many cases, they are successful companies that have accumulated significant investments, retained earnings and wealth over many years.”
What they share is a company structure that was set up with a specific purpose, often decades ago, and has not been meaningfully reviewed since. The 2026-27 Federal Budget’s proposed changes to the taxation of pre-CGT assets have become the prompt for that review. But Moore says the conversation that follows is rarely just about tax.
Peter Moore
“Many of these structures haven’t been reviewed for years,” he said. “The proposed tax changes are prompting advisers and their clients to ask whether those entities still serve the purpose they were originally established for.”
Jirsch Sutherland is predicting a significant increase in demand for Members’ Voluntary Liquidations as July 2027 approaches, with enquiries already rising as business owners and advisers seek clarity on how the evolving tax landscape affects their situation.
When tax becomes a succession conversation
Moore has noticed a consistent pattern in the conversations he is having. What begins as a question about tax efficiency quickly expands into something larger.
“What starts as a tax discussion quickly becomes a conversation about how wealth will be managed and transferred to the next generation,” he said.
For many business owners, the company structure they are sitting inside was established for succession planning, asset protection and tax efficiency purposes at a time when the rules were different and the next generation was young. Now those owners are older, their children are adults, and the rules are changing. The tax prompt has created an opening for a conversation that was overdue in any case.
“Many are exploring whether an MVL could provide a tax-effective way to release capital, simplify legacy entities and reduce ongoing compliance obligations,” Moore said. “The question many owners are now asking is whether the ongoing compliance costs, administration and complexity remain justified if the tax settings underpinning those structures are changing.”
What an MVL actually is and who it suits
A Members’ Voluntary Liquidation is a mechanism that allows a solvent company to be wound up and its surplus assets distributed to shareholders. It is not a response to financial difficulty. It is a structured, planned process chosen by business owners who have decided a company has fulfilled its original purpose and that the assets inside it are better managed or distributed outside of it.
Moore describes the typical candidate as a family investment company, a passive investment entity or a legacy corporate structure established years ago for succession planning or asset protection. These are businesses that have done their job. The question is whether they are still the right vehicle for what comes next.
For owners who decide an MVL is the right path, the process allows capital to be released, ongoing compliance obligations to be removed and corporate structures to be simplified, potentially ahead of a tax environment that will look different from July 2027 onwards.
Why starting now matters
Moore’s consistent message is that the businesses that start planning now will have more options than those that wait.
“Those who start planning now will have more flexibility, more time and more options,” he said. “Those who leave it too late may find themselves competing for the attention of valuers, lawyers, tax advisers and insolvency practitioners as demand increases.”
He is not suggesting owners rush into decisions based solely on proposed tax changes. The legislation has not yet been finalised and several technical details remain subject to confirmation. “The goal isn’t to rush into decisions based solely on proposed tax changes,” Moore said. “It’s about understanding the options available and ensuring clients are positioned to make informed decisions as the legislative picture becomes clearer.”
For business owners whose company structures have not been reviewed in years, the prompt is straightforward. Start the conversation with your accountant or adviser now. Not because the deadline is tomorrow, but because the businesses that plan ahead will have choices that those who wait until 2027 may not.
Peter Moore is a Partner at Jirsch Sutherland, a national insolvency solutions and business rescue firm. jirschsutherland.com.au. Business owners should seek advice from a registered tax professional before making any decisions.
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