Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-3 - CAPITAL GAINS AND LOSSES: SPECIAL TOPICS  

Division 137 - Granny flat arrangements  

Subdivision 137-A - When CGT events do not happen  

Operative provisions

SECTION 137-15  

137-15   CGT event does not happen when a certain kind of granny flat arrangement is entered into  

A *CGT event does not happen, to the extent it relates to creating a *granny flat interest in a *dwelling under an *arrangement by entering into the arrangement at a particular time (the start time ), if:

(a)    the individual who holds, or who is to hold, the granny flat interest under the arrangement is *eligible for a granny flat interest at the start time; and

(b)    another individual:

(i) holds an *ownership interest in the dwelling at the start time; or

(ii) agrees, under the arrangement, to *acquire an ownership interest in a dwelling that is to be the dwelling in which the first-mentioned individual is to hold the granny flat interest; and

(c)    at the start time, both individuals are parties to the arrangement; and

(d)    the arrangement:

(i) is in writing; and

(ii) indicates an intention for the parties to the arrangement to be legally bound by it; and

(e)    the arrangement is not of a commercial nature.