Tax Laws Amendment (2010 Measures No. 1) Act 2010 (56 of 2010)

Schedule 5   Consolidation

Part 3   Pre-CGT proportions

Income Tax Assessment Act 1997

19   Subsection 705-125(1)

Omit "That mechanism involves working out a factor by which the pre-CGT status can be attached to the joining entity's assets and then recognised in membership interests held in an entity that owns the assets on ceasing to be a *subsidiary member of the joined group.", substitute "That mechanism involves:

(a) working out the proportion (measured by market value) of the membership interests in the joining entity that have pre-CGT status; and

(b) if the joining entity later ceases being a member of the group, attaching pre-CGT status to that proportion of membership interests in it (see section 711-65), subject to integrity rules (see section 711-70).".