Tax Law Improvement Act (No. 1) 1998 (46 of 1998)

2   CGT (new Parts 3-1, 3-3 and 3-5)

4   Consequential amendment of other Acts

Financial Corporations (Transfer of Assets and Liabilities) Act 1993

542   Sections 18 and 19

Repeal the sections, substitute:

18 Additional roll-over relief

There is a roll-over under Subdivision 126-B of the Income Tax Assessment Act 1997 (which normally applies only to transfers between companies in the same wholly-owned group) if:

(a) the trigger event is a transfer to which this Act applies; and

(b) the requirements of that Subdivision are met, disregarding:

(i) subsection 126-50(1) of that Act (about the originating and recipient companies being members of the same wholly-owned group); and

(ii) subsection 126-50(5) of that Act (about the residency status of the originating and recipient companies and the asset's connection to Australia); and

(iii) section 126-55 (about the originating and recipient companies choosing to obtain the roll-over).

This is in addition to that Subdivision's effect apart from this section.

19 For the receiving corporation, asset has necessary connection with Australia

Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997 apply to an asset acquired by the receiving corporation as a result of a transfer as if the asset had, while it is an asset of the receiving corporation, the necessary connection with Australia.