INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17 - Miscellaneous roll-over relief  

SECTION 160ZZPIA   DEFINITIONS FOR THE PURPOSES OF SECTION 160ZZPI  

160ZZPIA(1)   When disposal is under a merger.  

For the purposes of section 160ZZPI , the disposal of an asset by the transferor to the transferee occurs under a merger between the transferor and the transferee if the disposal of the asset occurs during the merger period (see subsection (3)) in relation to a merger (see subsection (2)) between the transferor and the transferee.

160ZZPIA(2)   Meaning of merger.  

There is a merger between the transferor and the transferee if the following conditions are satisfied:

(a) at a particular time (the merger beginning ), the transferor for the first time disposes of an asset to the transferee, where the disposal of the asset occurs as part of the transfer of member benefits by the transferor to the transferee;

(b) at a later time (the merger end ), the transferor:

(i) has no remaining assets; and

(ii) has no remaining member benefits; and

(iii) has no members; and

(iv) will not accept new members;

(c) during the period from the merger beginning to the merger end, the transferor does not transfer any of its member benefits other than to the transferee, except where the transfer constitutes the making of an eligible benefit payment;

(d) the merger beginning is not before 1 July 1994 and the merger end is not after 30 June 1997;

(e) subject to subsection (6), the merger beginning and the merger end occur during one year of income of the transferor;

Note:

Subsection (6) is a transitional provision dealing with merger periods ending after 30 June 1994 and before 1 October 1995.

(f) both the transferor and the transferee are complying superannuation funds (within the meaning of Part IX) in relation to the year of income in which the merger beginning and the merger end occur.

160ZZPIA(3)   Meaning of merger period.  

The merger period , in relation to a merger, is the period from the merger beginning to the merger end.

160ZZPIA(4)   Meaning of eligible benefit payment.  

The expression eligible benefit payment means a payment of an eligible termination payment (within the meaning of subsection 27A(1) ) that satisfies the following conditions:

(a) the payment is in accordance with payment standards prescribed under subsection 31(1) of the Superannuation Industry (Supervision) Act 1993 ;

(b) the whole of the payment is made because the member meets a condition that relates to one or more of the following matters:

(i) retirement;

(ii) death;

(iii) permanent or temporary incapacity;

(iv) permanent departure from Australia;

(v) financial hardship;

(vi) the attainment of a particular age;

(vii) termination of employment.

160ZZPIA(5)   Meaning of qualifying superannuation fund.  

The expression qualifying superannuation fund means a superannuation fund other than:

(a) a self managed superannuation fund within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993 ; or

(b) an eligible rollover fund within the meaning of section 242 of that Act.

160ZZPIA(6)   Transitional - merger periods ending after 30 June 1994 and before 1 October 1995.  

For the purposes of subsection (2), if the year of income of the transferor in which the merger beginning occurs ends after 30 June 1994 and before 1 October 1995:

(a) the reference in paragraph (2)(e) to one year of income of the transferor; and

(b) the reference in paragraph (2)(f) to the year of income in which the merger beginning and the merger end occur;

are instead references to the period from the commencement of the transferor's year of income until the end of 30 September 1995.