Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 152 - Small business relief  

Subdivision 152-A - Basic conditions for relief under this Division  

Active asset test

SECTION 152-45   Continuing time periods for involuntary disposals  

Asset compulsorily acquired, lost or destroyed

152-45(1)    
If a *CGT asset is an asset (the new asset ) you acquired to satisfy the requirement in subsection 124-70(2) or 124-75(2) for a roll-over under Subdivision 124-B , then the active asset test in section 152-35 applies as if:

(a) you had acquired the new asset when you acquired the old asset; and

(b) the new asset had been your *active asset at all times when the original asset was your active asset; and

(c) the new asset had not been your active asset at all times when the original asset was not your active asset.

Note 1:

Subdivision 124-B allows you to choose a roll-over if your CGT asset is compulsorily acquired, lost or destroyed.

Note 2:

If this subsection applies to a CGT asset, then section 152-115 (which is about continuing time periods) will apply for the 15-year exemption.

Assets replaced during FSR transition (same owner roll-overs)

152-45(1A)    

If a *CGT asset is an asset (the new asset ) you acquired in a situation covered by former section 124-880 , 124-885 or 124-890 , then the active asset test in section 152-35 applies as if:

(a) you had acquired the new asset when you acquired the original asset; and

(b) the new asset had been your *active asset at all times when the original asset was your active asset; and

(c) the new asset had not been your active asset at all times when the original asset was not your active asset.

Note 1:

Former Subdivision 124-O provided a roll-over for certain CGT assets that came to an end as a result of an FSR transition.

Note 2:

If this subsection applies to a CGT asset, then section 152-115 (which is about continuing time periods) will apply for the 15-year exemption.

Assets replaced during FSR transition (new owner roll-overs)

152-45(1B)    

If a *CGT asset is an asset (the new asset ) acquired in a situation covered by former section 124-900 , 124-905 or 124-910 , then the active asset test in section 152-35 applies as if:

(a) the new owner had acquired the new asset when the original owner acquired the original asset; and

(b) the new asset had been the *active asset of the new owner at all times when the original asset was the original owner ' s active asset; and

(c) the new asset had not been the active asset of the new owner at all times when the original asset was not the original owner ' s active asset.

Note 1:

Former Subdivision 124-O provided a roll-over for certain CGT assets that came to an end as a result of an FSR transition.

Note 2:

If this subsection applies to a CGT asset, then section 152-115 (which is about continuing time periods) will apply for the 15-year exemption.

Marriage or relationship breakdowns

152-45(2)    
If you were the transferee of a *CGT asset for which there has been a roll-over under Subdivision 126-A , then you may choose that the active asset test in section 152-35 applies as if:

(a) you had acquired the asset when the transferor acquired the asset; and

(b) the asset had been an *active asset of yours at all times when the asset was an active asset of the transferor; and

(c) the asset had not been an active asset of yours at all times when the asset was not an active asset of the transferor.

Note 1:

Section 103-25 tells you when the choice must be made.

Note 2:

There is a roll-over under Subdivision 126-A if CGT assets are transferred because of a marriage or relationship breakdown.

Note 3:

If you don ' t make the choice, the time of acquisition is simply the time of the transfer.

Note 4:

Making the choice here has certain consequences for the 15-year exemption: see section 152-115 .