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 109-60

109-60 Acquisition rules outside this Part and Part 3-3

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This table sets out other acquisition rules outside this Part and Part 3-3.

Provisions of the Income Tax Assessment Act 1936 are in bold .

Other acquisition rules
Item	In these circumstances:	The asset is acquired at this time:	See:
1	CGT event happens to Cocos (Keeling) Islands asset	30 June 1991	subsection 102-25(1) of the Income Tax (Transitional Provisions) Act 1997
.
1A	(Repealed by No 20 of 2016)
.
2	Lender acquires a replacement security	before 20 September 1985	subsection 26BC(6A)
.
3	Trust ceases to be a resident trust for CGT purposes and there is an attributable taxpayer	when it ceases	section 102AAZBA
.
4	CGT event happens to CGT asset in connection with the demutualisation of an insurance company except a friendly society health or life insurer	on the demutualisation resolution day	section 121AS
.
5	CGT event happens to assets of NSW State Bank	at the first taxing time	section 121EN
.
6	You own shares in a company that stops being a PDF	just after it stops	section 124ZR
.
7	(Repealed by No 23 of 2018)
.
8	A CGT asset of a CFC (that it owned on its commencing day)	on the CFC ' s commencing day	section 411
.
9	A CGT asset is owned by a tax exempt entity and it becomes taxable	at the transition time	section 57-25 in Schedule 2D
.
10	CGT event happens to CGT asset in connection with the demutualisation of a mutual entity other than an insurance company, health insurer and friendly society health or life insurer	on the demutualisation resolution day	Division 326 in Schedule 2H
.
11	You stop holding an item as trading stock	when you stop	paragraph 70-110(1)(b)
.
11A	You acquire an *ESS interest and Subdivision 83A-C (about employee share schemes) applies to the interest	at the *ESS deferred taxing point for the interest	section 83A-125
.
12	CGT event happens to 30 June 1988 asset of a complying superannuation entity	30 June 1988	section 295-90
.
13	You are issued with a share or right under a demutualisation of a health insurer except a friendly society health or life insurer	the time the share or right is issued	sections 315-80, 315-210 and 315-260
.
14	You are transferred a share or right by a lost policy holders trust under a demutualisation of a health insurer except a friendly society health or life insurer	the time the share or right is issued	sections 315-145, 315-210 and 315-260
.
14A	You are issued with a share, or a right to acquire shares, under a demutualisation of a friendly society health or life insurer	the time the share or right is issued	section 316-105
.
14B	You are transferred a share, or right to acquire shares, by a lost policy holders trust under a demutualisation of a friendly society health or life insurer	the time the share or right is issued to the trustee	section 316-170
.
15	A CGT asset is transferred to or from a life insurance company ' s complying superannuation asset pool	at the time of the transfer	Division 320
.
16	A CGT asset is transferred to or from the segregated exempt assets of a life insurance company	at the time of the transfer	Division 320
.
17	Entity becomes a subsidiary member of a consolidated group	at the time it becomes a subsidiary member	701-5
.
18	Entity ceases to be a subsidiary member of a consolidated group	at the time it ceases	701-40

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History

S 109-60 amended by No 64 of 2020, s 3 and Sch 3 item 78, by substituting " a complying superannuation entity " for " complying superannuation fund, complying approved deposit fund or pooled superannuation trust " in table item 12, effective 1 July 2020.

S 109-60 amended by No 23 of 2018, s 3 and Sch 1 item 16, by repealing table item 7, effective 1 April 2018. For application provision, see note under s 713-140(5) . For general application and transitional provisions, see note under s 26-65 . Table item 7 formerly read:

7 You acquire a number of shares that results in you obtaining a 10% (threshold) interest in a SME when you obtained the threshold interest section 128TI

S 109-60 amended by No 20 of 2016, s 3 and Sch 1 item 1, by repealing table item 1A, effective 1 July 2016. Table item 1A formerly read:

1A CGT event happens to Norfolk Island asset 30 June 2016 subsection 102-25(2) of the Income Tax (Transitional Provisions) Act 1997

S 109-60 amended by No 53 of 2015, s 3 and Sch 1 items 10 and 11, by substituting " subsection 102-25(1) of the Income Tax (Transitional Provisions) Act 1997 " for " section 24P " in table item 1 and inserting table item 1A, applicable in relation to the 2016-17 income year and later income years.

S 109-60 amended by No 70 of 2015, s 3 and Sch 1 item 189, by substituting " superannuation " for " superannuation/FHSA " in table item 15, column headed " In these circumstances: " , effective 1 July 2015.

S 109-60 amended by No 132 of 2011, s 3 and Sch 2 item 15A, by substituting " 70-110(1)(b) " for " 70-110(b) " in table item 11, effective 2 April 2012.

S 109-60 amended by No 41 of 2011, s 3 and Sch 5 items 385 and 386, by substituting " in Schedule 2D " for " of Schedule 2D " in table item 9 and " in Schedule 2H " for " of Schedule 2H " in table item 10, column headed " See: " , effective 27 June 2011.

S 109-60 amended by No 133 of 2009, s 3 and Sch 1 item 30, by inserting table item 11A, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 .

S 109-60 amended by No 88 of 2009, s 3 and Sch 3 items 7 to 10, by inserting " except a friendly society health or life insurer " after " company " in the column headed " In these circumstances " of table item 4, substituting " , health insurer and friendly society health or life insurer " for " or health insurer " in the column headed " In these circumstances " in table item 10, inserting " except a friendly society health or life insurer " after " insurer " in the column headed " In these circumstances " in table items 13 and 14 and inserting table items 14A and 14B, applicable in relation to demutualisations occurring on or after 1 July 2008.

S 109-60 amended by No 97 of 2008 , s 3 and Sch 3 item 87, by substituting the table, effective 3 October 2008. The table formerly read:

Other acquisition rules

Item In these circumstances: The asset is acquired at this time: See:

1 You stop holding an item as trading stock when you stop paragraph 70-110(b)

.

2 CGT event happens to Cocos (Keeling) Islands asset 30 June 1991 section 24P

.

2A Lender acquires a replacement security before 20 September 1985 subsection 26BC(6A)

.

3 Trust ceases to be a resident trust for CGT purposes and there is an attributable taxpayer when it ceases section 102AAZBA

.

4 CGT event happens to CGT asset in connection with the demutualisation of an insurance company on the demutualisation resolution day section 121AS

.

4A CGT event happens to CGT asset in connection with the demutualisation of a mutual entity other than an insurance company or health insurer on the demutualisation resolution day Division 326 of Schedule 2H

.

5 CGT event happens to assets of NSW State Bank at the first taxing time section 121EN

.

6 You own shares in a company that stops being a PDF just after it stops section 124ZR

.

7 You acquire a number of shares that results in you obtaining a 10% (threshold) interest in a SME when you obtained the threshold interest section 128TI

.

8 CGT event happens to 30 June 1988 asset of complying superannuation fund, complying approved deposit fund or pooled superannuation trust 30 June 1988 section 295-90

.

9 A CGT asset of a CFC (that it owned on its commencing day) on the CFC ' s commencing day section 411

.

10 A CGT asset is owned by a tax exempt entity and it becomes taxable at the transition time section 57-25 of Schedule 2D

.

11 A CGT asset is transferred to or from a life insurance company ' s complying superannuation/FHSA asset pool at the time of the transfer Division 320

.

12 A CGT asset is transferred to or from the segregated exempt assets of a life insurance company at the time of the transfer Division 320

.

13 You are issued with a share or right under a demutualisation of a health insurer the time the share or right is issued sections 315-80, 315-210 and 315-260

.

14 You are transferred a share or right by a lost policy holders trust under a demutualisation of a health insurer the time the share or right is issued sections 315-145, 315-210 and 315-260

S 109-60 amended by No 97 of 2008 , s 3 and Sch 1 items 4 and 5, by substituting the column headed " In these circumstances " in table item 4A and inserting table items 13 and 14 at the end, applicable in relation to demutualisations occurring on and after 1 July 2007. The column headed " In these circumstances " in table item 4A formerly read:

CGT event happens to CGT asset in connection with the demutualisation of a mutual entity other than an insurance company

S 109-60 amended by No 45 of 2008, s 3 and Sch 5 item 2, by substituting " complying superannuation/FHSA asset pool " for " virtual PST " in table item 11, effective 26 June 2008.

S 109-60 amended by No 15 of 2007, s 3 and Sch 1 items 189 and 190, by substituting " complying approved deposit fund or pooled superannuation trust " for " complying ADF or complying PST " and substituting " section 295-90 " for " section 306 " in table item 8, applicable to the 2007-2008 income year and later years.

S 109-60 amended by No 58 of 2006 , s 3 and Sch 7 item 72, by inserting " of Schedule 2H " after " Division 326 " in table item 4A, effective 22 June 2006.

S 109-60 amended by No 41 of 2005, No 89 of 2000, No 103 of 1999 and inserted by No 46 of 1998.

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