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:
An entity can choose a roll-over under this Subdivision if:
(a) the entity makes or could make a choice under Subdivision 310-B (the losses choice ) to transfer the losses of an entity (the transferring entity ); and
(b) the conditions in this section are satisfied for the *arrangement to which the losses choice relates.
310-45(2)
The first condition is that, under the *arrangement, one or more *CGT events (the transfer events ) happen in relation to the following assets (the original assets ) of the transferring entity with the result that it ceases to own those assets:
(a) for a losses choice under section 310-10 (original funds) - all of its *CGT assets;
(b) for a losses choice under section 310-15 (life insurance companies) - all of its CGT assets reasonably attributable to the *complying superannuation life insurance policy held by the original fund for the losses choice just before the arrangement was made;
(c) for a losses choice under section 310-20 (pooled superannuation trusts) - all of its CGT assets reasonably attributable to the units in that entity held by the original fund for the losses choice just before the arrangement was made.
310-45(3)
The second condition is that the transfer events all happen in the income year (the transfer year ) for the transferring entity that includes the completion time for the losses choice.
[
CCH Note:
No 147 of 2011, s 3 and Sch 6 item 6 contains the following transitional provision:
6 Transitional provision
-
completion times and transfer events
]
6
For the purposes of subsection 310-45(3) of the
Income Tax Assessment Act 1997
, as in force just after the commencement of item 1 of Schedule 2 to the
Tax Laws Amendment (2009 Measures No. 6) Act 2010
:
(a)
treat the completion time for a losses choice as occurring in the 2010-11 income year, if the completion time happens during the period:
(i)
starting on 1 July 2010; and
(ii)
ending on 30 September 2011; and
(b)
treat a transfer event as happening in that income year for the transferring entity, if the transfer event happens during that period.
310-45(4)
The third condition is that, for each transfer event, an asset (the received asset ) becomes an asset of one of the following (the receiving entity ) as a result of the event:
(a) a continuing fund for the losses choice;
(b) a *pooled superannuation trust in which units are held by a continuing fund for the losses choice just after the completion time;
(c) a *life insurance company with which a *complying superannuation life insurance policy is held by a continuing fund for the losses choice just after the completion time.
310-45(5)
For the purposes of subsection (2), ignore any *CGT assets retained by the transferring entity:
(a) to pay its existing or expected debts relating to the *arrangement; or
(b) to meet its liabilities relating to individuals who have remained members (within the meaning of the Superannuation Industry (Supervision) Act 1993 ) of the original fund because of circumstances beyond the control of the trustee of that fund.
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