Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS

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Division 109 - Acquisition of CGT assets

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Subdivision 109-B - Signposts to other acquisition rules

SECTION 109-55

109-55 Other acquisition rules

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This table sets out other acquisition rules in this Part and Part 3-3. Some of the rules have effect only for limited purposes.

Other acquisition rules
Item	In these circumstances:	You acquire the asset at this time:	See:
1	A CGT asset devolves to you as legal personal representative of a deceased individual	when the individual died	section 128-15
.
2	A CGT asset passes to you as beneficiary in the estate of a deceased individual	when the individual died	sections 128-15 and 128-25
.
3	A surviving joint tenant acquires deceased joint tenant ' s interest in a CGT asset	when the deceased died	section 128-50
.
4	You get only a partial exemption under Subdivision 118-B for a CGT event happening to a CGT asset that is a dwelling, but you would have got a full exemption if the CGT event had happened just before the first time the dwelling was used for that purpose	at that time	section 118-192
.
5	The trustee of a deceased estate acquires a dwelling under the deceased ' s will for you to occupy, and you obtain an interest in it	when the trustee acquired it	section 118-210
.
6	You obtain a replacement-asset roll-over for replacing an asset you acquired before 20 September 1985	before 20 September 1985	Divisions 122 and 124
.
6A	(Repealed by No 109 of 2014)
.
7	You obtain a replacement-asset roll-over for a Crown lease, or a prospecting or mining entitlement that is renewed or replaced and part of the new entitlement relates to a part of the old one that you acquired before 20 September 1985	before 20 September 1985 (for that part of the new entitlement that relates to the pre-CGT part of the old one)	sections 124-595 and 124-725
.
7A - 7B	(Repealed by No 109 of 2014)
.
8	You obtain a same-asset roll-over for a CGT asset the transferor acquired before 20 September 1985	before 20 September 1985	Subdivision 124-N and Divisions 122 and 126
.
8A	There is a same-asset roll-over for a CGT event that happens to a CGT asset (acquired on or after 20 September 1985) because the trust deed of a fund is changed and you are the fund that owns the asset after the CGT event	at the time of the CGT event	Subdivision 126-C
.
8B	There is a same-asset roll-over for a CGT event that happens to a CGT asset	when the entity that owned the asset before the roll-over acquired it	section 115-30
.
8C	You obtain a replacement-asset roll-over (other than a roll-over covered by section 115-34) for replacing a CGT asset	when you acquired the original asset involved in the roll-over	section 115-30
.
8D	A CGT asset devolves to you as legal personal representative of a deceased individual	when the deceased acquired the asset (unless it was a pre-CGT asset just before his or her death)	section 115-30
.
8E	A CGT asset passes to you as beneficiary in the estate of a deceased individual	when the deceased acquired the asset (unless it was a pre-CGT asset just before his or her death)	section 115-30
.
8F	A surviving joint tenant acquires a deceased joint tenant ' s interest in a CGT asset	when the deceased acquired the interest	section 115-30
.
8G	You hold a membership interest in the receiving trust involved in a roll-over under Subdivision 126-G	when you acquired the corresponding membership interest in the transferring trust involved in the roll-over	section 115-30
.
9	A company or trustee of a unit trust issues you with bonus equities and no amount is included in your assessable income	if the original equities are post-CGT assets, or are pre-CGT assets and fully paid - when you acquired the original equities; or if the original equities are pre-CGT assets and you had to pay an amount for the bonus equities - when the liability to pay arose	section 130-20
.
10	You own shares in a company or units in a unit trust and you exercise rights to acquire new equities in the company or trust	for the rights if you acquired them from the company or trustee - when you acquired the original equities; or for the new equities - when you exercise the rights	section 130-40
.
11	You acquire shares in a company or units in a unit trust by converting a convertible interest	when the conversion of the convertible interest happened	section 130-60
.
11A	You acquire shares in a company in exchange for the disposal of an exchangeable interest, and the disposal of the exchangeable interest was to:	when the disposal of the exchangeable interest happened	section 130-105
	(a)	the issuer of the exchangeable interest; or
	(b)	a connected entity of the issuer of the exchangeable interest
.
11B	You acquire shares in a company in exchange for the redemption of an exchangeable interest	when the redemption of the exchangeable interest happened	section 130-105
.
12	(Repealed by No 133 of 2009)
.
13	You (as a lessee of land) acquire the reversionary interest of the lessor and there is no roll-over for the acquisition	if term of lease was for 99 years or more - when the lease was granted or assigned to you; or if term of lease less than 99 years - when the reversionary interest acquired	section 132-15
.
14	You acquired a CGT asset before 20 September 1985, and there has since been a change in the majority underlying interests in the asset	at the time of the change	Division 149
.
15	You become an Australian resident (but not a temporary resident) and you owned a CGT asset that you acquired on or after 20 September 1985 and that was not *taxable Australian property	when you become an Australian resident (but not a temporary resident)	section 855-45
.
15A	You are a temporary resident, you then cease to be a temporary resident (but remain, at that time, an Australian resident) and you owned a CGT asset that you acquired on or after 20 September 1985 and that was not *taxable Australian property	when you cease to be a temporary resident	section 768-955
.
16	A trust of which you are trustee becomes a resident trust for CGT purposes and you owned a CGT asset that you acquired on or after 20 September 1985 and that was not *taxable Australian property	when the trust becomes a resident trust for CGT purposes	section 855-50
.
17	There is a roll-over under Subdivision 126-B for a CGT event and you are the company owning the roll-over asset just after the roll-over and you stop being a 100% subsidiary of another company in the wholly-owned group	when you stop	section 104-175

Note:

Section 115-34 sets out other acquisition rules for certain cases involving replacement-asset roll-overs covered by that section.

[ CCH Note: Act No 173 of 2000, s 3 and Sch 4 item 30, provides for the amendment of s 109-55 (table) by omitting " not " from the column referring to " circumstances " in item 9. This amendment could not be consolidated, as it was previously effected by No 58 of 2000, s 3 and Sch 8 item 19.]

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History

S 109-55 amended by No 109 of 2014, s 3 and Sch 10 item 30, by repealing table items 6A, 7A and 7B, effective 17 October 2014. Table items 6A, 7A and 7B formerly read:

6A A new owner obtains a replacement-asset roll-over for replacing an asset that the original owner acquired before 20 September 1985 before 20 September 1985 sections 124-915 and 124-920

.

7A You obtain a replacement-asset roll-over in relation to an FSR transition and a replacement asset or part of a replacement asset relates to an original asset that you acquired before 20 September 1985 before 20 September 1985 (for that replacement asset or that part of a replacement asset that relates to a pre-CGT original asset) section 124-895

.

7B A new owner obtains a replacement-asset roll-over in relation to an FSR transition and a replacement asset or part of a replacement asset relates to an original asset that the original owner acquired before 20 September 1985 before 20 September 1985 (for that replacement asset or that part of a replacement asset that relates to a pre-CGT original asset) sections 124-915 and 124-920

S 109-55 amended by No 56 of 2010, s 3 and Sch 6 items 135 and 136, by inserting " (other than a roll-over covered by section 115-34) " in table item 8C and inserting the note at the end, applicable to assessments for the income years including 21 September 1999 and for later income years, in relation to CGT events happening after 11.45 am (by legal time in the Australian Capital Territory) on that day.

S 109-55 amended by No 19 of 2010, s 3 and Sch 1 item 5, by inserting table item 8G, applicable to CGT events happening on or after 1 November 2008.

S 109-55 amended by No 133 of 2009, s 3 and Sch 1 item 29, by repealing table item 12, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 . Table item 12 formerly read:

12 ... You acquire a share or right under an employee share scheme from an employee share trust ... at the time you first acquired a beneficial interest in the share or right ... section 115-30

S 109-55 amended by No 168 of 2006 , s 3 and Sch 4 items 32 to 36, by substituting " was not *taxable Australian property " for " did not have the necessary connection with Australia " in column 2 of table item 15, substituting " section 855-45 " for " section 136-40 " in column 4 of table item 15, substituting " was not *taxable Australian property " for " did not have the necessary connection with Australia " in column 2 of table item 15A, substituting " was not *taxable Australian property " for " did not have the necessary connection with Australia " in column 2 of table item 16 and substituting " section 855-50 " for " section 136-45 " in column 4 of table item 16, applicable to CGT events that happen on or after 12 December 2006.

S 109-55 amended by No 32 of 2006, s 3 and Sch 1 items 22 and 23, by inserting " (but not a temporary resident) " after " become an Australian resident " in table item 15 and inserting table item 15A, effective 6 April 2006.

S 109-55 amended by No 41 of 2005 and No 101 of 2004.

S 109-55 amended by No 163 of 2001. For application provisions, see note under Div 974 heading.

S 109-55 amended by No 133 of 2003, No 101 of 2003, No 53 of 2002, No 114 of 2000, No 58 of 2000, No 169 of 1999, No 94 of 1999, No 63 of 1998 and inserted by No 46 of 1998.

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6A	A new owner obtains a replacement-asset roll-over for replacing an asset that the original owner acquired before 20 September 1985	before 20 September 1985	sections 124-915 and 124-920
.
7A	You obtain a replacement-asset roll-over in relation to an FSR transition and a replacement asset or part of a replacement asset relates to an original asset that you acquired before 20 September 1985	before 20 September 1985 (for that replacement asset or that part of a replacement asset that relates to a pre-CGT original asset)	section 124-895
.
7B	A new owner obtains a replacement-asset roll-over in relation to an FSR transition and a replacement asset or part of a replacement asset relates to an original asset that the original owner acquired before 20 September 1985	before 20 September 1985 (for that replacement asset or that part of a replacement asset that relates to a pre-CGT original asset)	sections 124-915 and 124-920