Taxation Laws Amendment Act (No. 1) 2004 (101 of 2004)

Schedule 9   Roll-over for FSR transitions

Part 1   Amendments

Income Tax Assessment Act 1997

14   After subsection 152-45(1)

Insert:

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

(1A) If a *CGT asset is an asset (the new asset ) you acquired in a situation covered by 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: Subdivision 124-O provides a roll-over for certain CGT assets that come 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)

(1B) If a *CGT asset is an asset (the new asset ) acquired in a situation covered by 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: Subdivision 124-O provides a roll-over for certain CGT assets that come 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.