General Value Shifting

Value shifts change the relationship between the market value and tax value of an asset. Without a value-shifting regime in place, the creation of artificial losses and deferral of gains may be encouraged.

Where the General Value Shifting Regime (GVSR) applies, you may need to adjust the tax values of an interest affected by the value shift, or adjust a realised loss or gain. In some cases there may be an immediate capital gain.

Value shifts occur in the form of:

• Indirect value shifting
• Direct value shifts on interests
• Direct value shifts by creating rights

These shifts are explained in the General Value Shifting Regime section of the ATO website.