Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

Division 149 - When an asset stops being a pre-CGT asset  

SECTION 149-5   Assets that stopped being pre-CGT assets under old law  

149-5(1)    
This section applies to a CGT asset that:

(a) an entity last acquired before 20 September 1985; and

(b) the entity owned just before the start of the 1998-99 income year; and

(c) the entity was taken to have acquired on a day (the acquisition day ) on or after 20 September 1985 under Division 20 of former Part IIIA of the Income Tax Assessment Act 1936 .

149-5(2)    
In applying Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997 to the entity:

(a) the entity is taken to have acquired the asset on the acquisition day; and

(b) the first element of the cost base and reduced cost base of the asset on the acquisition day is the amount for which the entity is taken to have acquired it under Division 20 of former Part IIIA of the Income Tax Assessment Act 1936 .