INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17 - Miscellaneous roll-over relief  

SECTION 160ZZPJ   CHANGES IN TRUST DEEDS  

160ZZPJ(1)   When section applies.  

This section applies to an asset that is disposed of as result of the trust deed of a trust (the first trust ) being amended or replaced where:

(a) immediately before the disposal the asset is held by the first trust; and

(b) immediately after the disposal the asset is held by a trust (the second trust ) (which may or may not be the first trust); and

(c) the assets held by, and the members of, the first trust immediately before the disposal are identical to the assets held by, and the members of, the second trust immediately after the disposal; and

(d) either:

(i) the first trust is a complying ADF or a complying superannuation fund and the deed was amended or replaced to comply with the Superannuation Industry (Supervision) Act 1993 ; or

(ii) the first trust is a complying ADF and the deed was amended or replaced so that it became a complying superannuation fund .

160ZZPJ(2)   Part does not apply to disposal.  

This Part (other than this section) does not apply in respect of the disposal of the asset.

160ZZPJ(3)   Asset last acquired before 20 September 1985.  

If the day (the last acquisition day ) on which the last acquisition of the asset by the first trust before the disposal occurred was before 20 September 1985, the acquisition of the asset by the second trust is taken to have occurred before that day.

160ZZPJ(4)   Asset last acquired on or after 20 September 1985.  

Subsections (5) to (8) apply if the last acquisition day was on or after 20 September 1985.

160ZZPJ(5)   Trust to have acquired asset.  

The second trust is taken to have acquired the asset at the time of the disposal.

160ZZPJ(6)   Calculating future capital gains.  

For the purpose of ascertaining if a capital gain accrued to the second trust in the event of a subsequent disposal of the asset by the second trust, the second trust is taken to have paid, as consideration for the acquisition of the asset, the amount that would have been the indexed cost base to the first trust of the asset for the purposes of this Part if this Part had applied to the disposal of the asset by the first trust.

160ZZPJ(7)   Calculating future capital losses.  

For the purpose of ascertaining if the second trust incurred a capital loss in the event of a subsequent disposal of the asset by the second trust, the second trust is taken to have paid, as consideration for the acquisition of the asset, the amount that would have been the reduced cost base to the first trust of the asset for the purposes of this Part if this Part had applied to the disposal of the asset by the first trust.

160ZZPJ(8)   Disposals within 12 months.  

If the asset is disposed of by the second trust within 12 months after the last acquisition day, the reference in subsection (6) to the indexed cost base to the second trust of the asset is to be read as a reference to the cost base to the second trust of the asset.

160ZZPJ(9)   Interpretation.  

In this section, complying ADF and complying superannuation fund have the same meaning as in subsection 267(1) .