Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 126 - Roll-overs  

Subdivision 126-B - Transfer of life insurance business  

SECTION 126-150   Roll-over on transfer of life insurance business  

126-150(1)    
There may be a roll-over if:

(a) a CGT event happens because all or part of the life insurance business of a life insurance company (the originating company ) is transferred to another life insurance company (the recipient company ):

(i) in accordance with a scheme confirmed by the Federal Court of Australia under Part 9 of the Life Insurance Act 1995 ; or

(ii) under the Financial Sector (Transfers of Business) Act 1999 ; and

(b) the originating company and the recipient company were members of the same wholly-owned group just before the transfer; and

(c) one of these happens:

(i) a CGT asset (the original asset ) of the originating company becomes an asset of the recipient company; or

(ii) a CGT asset of the originating company ends and the recipient company acquires an equivalent replacement asset; or

(iii) the originating company creates a CGT asset in the recipient company; and

(d) the transfer takes place:

(i) before 30 June 2004; or

(ii) if the originating company and the recipient company are members of the same consolidated group or consolidatable group and the head company of that group has a substituted accounting period - before the end of the head company's income year in which 30 June 2004 occurs.

126-150(2)    
The CGT asset involved (the roll-over asset ) must not be trading stock of the recipient company just after the time of the transfer.

126-150(3)    

If:

(a) the roll-over asset is a right or convertible interest referred to in Division 130 , or an option referred to in Division 134 , of the Income Tax Assessment Act 1997 or an exchangeable interest; and

(b) the recipient company acquires another CGT asset by exercising the right or option or by converting the convertible interest or in exchange for the disposal or redemption of the exchangeable interest;

the other asset cannot become trading stock of the recipient company just after the recipient company acquired it.