Capital gains tax has an enormous impact on the business and tax structuring of small businesses. Thus it is essential to maintain a close watch over changes to capital gains tax law.

A few changes will come into force from 1 July 2007, noteworthy is the increase in the net asset value test from A$5 million to A$6 million.

Some of the changes already effective from 1 July 2006 are discussed in this article. (The Government's press release on recent capital gains tax changes is here.)

It is an illusion to believe that results can be achieved by using a free letter of demand template. Complexities exist that a simple cease and desist letter does not usually deal with.

Templates are useful, the more the better. However, at least in Sydney all need to be heavily customised to convince recipients to respond as desired. Thirty years ago people respected a "solicitor's letter". Today they need to be convinced by one.

A writer of a demand letter is in the behaviour modification business. It requires cunning and craft to convince people and businesses to change their position or behaviour on demand.