History
S 126-210(5) amended by No 15 of 2007.
S 126-210 repealed by No 109 of 2014, s 3 and Sch 10 item 48, effective 17 October 2014. S 126-210 formerly read:
SECTION 126-210 When there is a roll-over and what its effects are
When there is a roll-over
126-210(1)
There is a roll-over if:
(a)
after 30 June 2004 and before 1 July 2006, one or more *CGT events happen because the trustee (the
first RSE trustee
) of a registrable superannuation entity, as defined in section
10
of the
Superannuation Industry (Supervision) Act 1993
, ceases to hold all its *CGT assets; and
(b)
because of the cessation, CGT assets (the
identical assets
) that, together, are identical to all the first RSE trustee
'
s CGT assets just before the CGT events start to be held after 30 June 2004 and before 1 July 2006 by:
(i)
the trustee (the
successor RSE trustee
) of another such registrable superannuation entity; or
(ii)
the trustees (each of whom is a
successor RSE trustee
) of 2 or more other such registrable superannuation entities;
(whether or not all the identical assets were the first RSE trustee
'
s assets just before the CGT events); and
(c)
the cessation and starting occur because:
(i)
it is reasonable to assume that the first RSE trustee will not have an RSE licence under Part
2A
of that Act by 1 July 2006; and
(ii)
each successor RSE trustee has such an RSE licence, or it is reasonable to assume that each successor RSE trustee will have such an RSE licence by 1 July 2006.
Note:
Under section
10
of the
Superannuation Industry (Supervision) Act 1993
,
registrable superannuation entity
is defined as covering certain kinds of superannuation funds, approved deposit funds and pooled superannuation trusts.
Effects of the roll-over
126-210(2)
A *capital gain or *capital loss the first RSE trustee makes from each of the *CGT events is disregarded.
126-210(3)
For a successor RSE trustee, the first element of the *cost base of each of the identical assets the successor RSE trustee holds is the cost base of the corresponding asset for the first RSE trustee at the time of the relevant *CGT event.
126-210(4)
For a successor RSE trustee, the first element of the *reduced cost base of each of the identical assets the successor RSE trustee holds is the reduced cost base of the corresponding asset for the first RSE trustee at the time of the relevant *CGT event.
Example:
There is a roll-over if the first RSE trustee had a block of land and 10,000 units in a unit trust and the following events happen on 30 June 2006 because the first RSE trustee does not have an RSE licence but each of the 2 successor RSE trustees (successor RSE trustee A and successor RSE trustee B) does:
(a) the first RSE trustee transfers the block to successor RSE trustee A;
(b) the first RSE trustee
'
s units in the unit trust are cancelled at the first RSE trustee
'
s request;
(c) 10,000 identical units in the unit trust are issued to successor RSE trustee B because of the cancellation.
The first RSE trustee disregards any capital gain or capital loss from the transfer of the block or the cancellation of the units.
The first element of successor RSE trustee A
'
s cost base and reduced cost base for the block is the same as the first RSE trustee
'
s cost base and reduced cost base respectively for the block at the time of the transfer.
The first element of successor RSE trustee B
'
s cost base and reduced cost base for the units issued to successor RSE trustee B is the same as the first RSE trustee
'
s cost base and reduced cost base respectively for its units at the time they were cancelled.
126-210(5)
A successor RSE trustee that starts to hold one of the identical assets because of the cessation is taken to have *acquired the asset before 20 September 1985 if the first RSE trustee acquired the corresponding asset before that day.
Note 1:
A capital gain or loss you make from a CGT asset you acquired before 20 September 1985 is generally disregarded: see Division
104
. This exemption is removed in some situations: see Division
149
.
Note 2:
Subsection (5) cannot apply if the first RSE trustee was the trustee of a complying superannuation fund, complying approved deposit fund or pooled superannuation trust. This is because section
295-90
treats such a trustee as having acquired on 30 June 1988 any assets it owned on that day.
History
S 126-210(5) amended by No 15 of 2007, s 3 and Sch 1 item 199, by substituting
"
section 295-90
"
for
"
section
306
of the
Income Tax Assessment Act 1936
"
, applicable to the 2007-2008 income year and later years.
No roll-over if successor RSE trustee not licensed
126-210(6)
A roll-over under this section is taken never to have happened if each successor RSE trustee does not have an RSE licence under Part
2A
of the
Superannuation Industry (Supervision) Act 1993
by 1 July 2006.
S 126-210 inserted by No 78 of 2005.
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