Income Tax Assessment Act 1997
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CCH Note:
No 158 of 2012 (as amended by No 23 of 2018 and No 49 of 2020), s 3 and Sch 1 item 19 contains the following application provision:
on or after 1 October 2011. The effect of paragraph (a) is that all of the members of the original fund will need to become members of a continuing fund during this period. The effect of paragraph (b) is that the transferring fund needs to cease to hold all relevant assets during this period.
Application provision
19
The amendments made by this Schedule apply in relation to a transferring entity and a receiving entity if:
(a)
the condition in subsection
310-10(3)
,
310-15(3)
or
310-20(3)
of the
Income Tax Assessment Act 1997
for those entities is satisfied; and
(b)
all the transfer events (if any) referred to in subsection
310-45(2)
of that Act for those entities happen;
Note 1:
Note 2:
A trustee of a *pooled superannuation trust (the transferring entity ) can choose to transfer losses if an *arrangement is made for which the conditions in this section are satisfied.
Units in the trust were held by the original fund
310-20(2)
The first condition is satisfied if, just before the *arrangement was made, units in the transferring entity were held by:
(a) a *complying superannuation fund (the original fund ); or
(b) a *complying approved deposit fund (the original fund ).
Note:
Other entities may also choose under this Subdivision to transfer losses, for the same arrangement, if the original fund holds other assets.
Original fund ' s members transfer to a continuing fund
310-20(3)
The second condition is satisfied if, under the *arrangement:
(a) the original fund ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) at a particular time (the completion time ); and
(b) the individuals who cease to be members (within the meaning of that Act) of the original fund become members (within the meaning of that Act) of one or more *complying superannuation funds (the continuing funds ).
Continuing funds will usually not be able to be small funds
310-20(4)
The third condition is satisfied if either:
(a) none of the continuing funds was a *small superannuation fund, and all existed, just before the *arrangement was made; or
(b) the following subparagraphs apply:
(i) only one of the continuing funds either was a small superannuation fund, or did not exist, just before the arrangement was made;
(ii) under the arrangement, a *complying superannuation fund or *complying approved deposit fund, other than the original fund, ceases to have any members (within the meaning of the Superannuation Industry (Supervision) Act 1993 );
(iii) under the arrangement, the individuals who cease to be members (within the meaning of that Act) of that other fund become members (within the meaning of that Act) of the continuing fund;
(iv) either the other fund or the original fund was not a small superannuation fund just before the arrangement was made;
(v) the continuing fund is not a small superannuation fund just after the earliest time when both the other fund and the original fund cease to have any members (within the meaning of that Act).
Ignore members who cannot transfer to a continuing fund
310-20(5)
For the purposes of subsections (3) and (4), ignore an individual who remains a member of a *complying superannuation fund or *complying approved deposit fund because of circumstances beyond the control of the trustee of that fund.
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