INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17 - Miscellaneous roll-over relief  

SECTION 160ZZPG   STRATA TITLE CONVERSIONS  

160ZZPG(1)   [Application of section]  

This section applies where:

(a) under a strata title law of a State or Territory or of a foreign country, land on which is erected one or more buildings is or was subdivided into stratum units, or into stratum units and common property; and

(b) immediately before the subdivision, a taxpayer (in this section called the ``converting taxpayer'' ) held a particular asset (in this section called the ``original asset'' ) being an asset in relation to the land.

160ZZPG(2)   [Election by taxpayer]  

If:

(a) the converting taxpayer has elected that this subsection is to apply to the taxpayer in respect of the subdivision; and

(b) the Commissioner is satisfied, having regard to the following matters:

(i) the extent (if any) to which any interests in relation to the stratum units are or were held by persons who did not hold assets in relation to the land immediately before the subdivision;

(ii) the extent (if any) to which the rights of occupancy in relation to the stratum units differ from the rights of occupancy held immediately before the subdivision;

(iii) any other matters that the Commissioner considers relevant;

that it is appropriate to grant CGT roll-over relief in relation to the taxpayer in respect of the subdivision;

the Commissioner must take such steps as are necessary to grant CGT roll-over relief in relation to the taxpayer in respect of the subdivision.

160ZZPG(3)   [Commissioner's determination]  

The steps that the Commissioner may take include:

(a) if the taxpayer disposed of an original asset - treating the original asset as if this Part did not apply in respect of the disposal; or

(b) if an original asset was acquired by the taxpayer before 20 September 1985 - treating a particular asset held by the taxpayer as having been acquired by the taxpayer before 20 September 1985; or

(c) if an original asset was acquired by the taxpayer on or after 20 September 1985 - treating the taxpayer as having paid, as consideration in respect of the acquisition of a particular asset held by the taxpayer, an amount equal to:

(i) for the purpose of ascertaining whether a capital gain accrued to the taxpayer in the event of a subsequent disposal of the asset by the taxpayer - such amount as is ascertained in a manner that the Commissioner determines to be appropriate; or

(ii) for the purpose of ascertaining whether the taxpayer incurred a capital loss in the event of the subsequent disposal of the asset by the taxpayer - such amount as is ascertained in a manner that the Commissioner determines to be appropriate.

160ZZPG(4)   [Determination of consideration]  

A determination under paragraph (3)(c) may provide for the amount concerned to be ascertained in a different manner in different circumstances.

160ZZPG(5)   [Form and period of election]  

An election for the purposes of subsection (2) is to be in writing and lodged with the Commissioner on or before the date of lodgment of the taxpayer's return of income of the later of the following years of income:

(a) the year of income in which the subdivision concerned occurred;

(b) the year of income in which this section commenced;

or within such further period as the Commissioner allows.

160ZZPG(6)   [Asset in relation to land]  

A reference in this section to an asset in relation to land includes a reference to a share in a company that owns a legal or equitable estate or interest in the land, being a share that entitles the holder to a right of occupancy to, or to a part of, a building erected on the land.

160ZZPG(7)   [Definitions]  

In this section:

"strata title law"
means a law relating to strata title, group title, cluster title, unit title or similar title;

"stratum unit"
, in relation to a strata title law, means a lot or unit (however described in that law).