Taxation Laws Amendment Act (No. 8) 2003 (107 of 2003)

Schedule 2   Various amendments relating to consolidated groups

Part 2   Cost base and reduced cost base of pre-CGT assets

Income Tax Assessment Act 1997

5   After section 716-850

Insert:

716-855 Working out the cost base or reduced cost base of a pre-CGT asset after certain roll-overs

If:

(a) it is necessary for the purposes of this Part to work out the *cost base or *reduced cost base of a *pre-CGT asset owned at a particular time; and

(b) before that time:

(i) the owner was the recipient company involved in a roll-over under Subdivision 126-B in relation to a *CGT event that happened in relation to the CGT asset; or

(ii) the owner was the transferee in relation to a disposal of the CGT asset to which section 160ZZO of the Income Tax Assessment Act 1936 applied;

the cost base or reduced cost base is worked out as if, in applying Subdivision 126-B or section 160ZZO in relation to the CGT event or the disposal, the provisions of that Subdivision or section applying to CGT assets *acquired on or after 20 September 1985 replaced those that applied to CGT assets acquired on or before that date.

Note: The effect is that the owner's cost base or reduced cost base will be the same as that of the originating company or transferor, as is the case with post-CGT assets.