Taxation Laws Amendment Act (No. 4) 1994 (181 of 1994)

Schedule 1   AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

Part 2   CHILDREN'S INCOME

20   After section 102AG

Insert the following section:

Transfer of property as the result of a family breakdown

"102AGA. (1) For the purposes of subparagraph 102AE(2)(b)(viii) or 102AG(2)(c)(viii), the transfer of property (the 'subject property') by a person (the 'transferor'):

(a) to the minor mentioned in subparagraph 102AE(2)(b)(viii); or

(b) to the trustee mentioned in subparagraph 102AG(2)(c)(viii) for the benefit of the beneficiary mentioned in that subparagraph;

is 'as the result of a family breakdown' if the requirements of subsection (2) or (3) of this section are met.

"(2) The transfer will be as the result of a family breakdown if:

(a) a person ceases to live with another person as the spouse of that person on a genuine domestic basis (whether or not legally married to that person); and

(b) at least one of the persons:

(i) is the natural parent; or

(ii) is the adoptive parent; or

(iii) is the step-parent; or

(iv) has legal custody or guardianship;

of the minor or the beneficiary; and

(c) an order, determination or assessment of a court, person or body (whether or not in Australia) is made wholly or partly because the person has ceased to live as the spouse of the other person on a genuine domestic basis; and

(d) the effect of the order, determination or assessment is that a person (whether one of the spouses, the transferor or any other person) becomes subject to a legal obligation to maintain, transfer property to, or do some other thing for the benefit of, the minor or beneficiary or one of the spouses; and

(e) the transferor transfers the subject property to the minor, or to the trustee for the benefit of the beneficiary, in giving effect to the legal obligation (including in discharging the legal obligation if it falls on someone else, and whether or not the legal obligation could have been given effect in some other way).

"(3) The transfer will also be as a result of a family breakdown if:

(a) when the minor or beneficiary is born, his or her natural parents are not living together as spouses on a genuine domestic basis (whether or not legally married); and

(b) an order, determination or assessment of a court, person or body (whether or not in Australia) is made wholly or partly because the natural parents are not living together as mentioned in paragraph (a); and

(c) the effect of the order, determination or assessment is that a person (whether one of the natural parents, the transferor or any other person) becomes subject to a legal obligation to maintain, transfer property to, or do some other thing for the benefit of, the minor or beneficiary or one of the natural parents of the minor or beneficiary; and

(d) the transferor transfers the subject property to the minor, or to the trustee for the benefit of the beneficiary, in giving effect to the legal obligation (including in discharging the legal obligation if it falls on someone else, and whether or not the legal obligation could have been given effect in some other way).".