Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

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

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History

Part 3-3 inserted by No 46 of 1998.

Division 128 - Effect of death  

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Div 128 inserted by No 46 of 1998.

General rules  

SECTION 128-25   The beneficiary is a trustee of a superannuation fund etc.  

128-25(1)    

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This section has rules about *cost base and *reduced cost base that are relevant if you die and a *CGT asset you owned just before dying *passes to a beneficiary in your estate who (when the asset passes) is the trustee of a *complying superannuation entity.

Note:

A capital gain or loss is also made: see section 104-215 .

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S 128-25(1) substituted by No 169 of 1999.

128-25(2)    

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The beneficiary is taken to have *acquired the asset on the day you died. The first element of the *cost base and *reduced cost base of the asset is its *market value on that day.

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S 128-25(2) amended by No 97 of 2008 , s 3 and Sch 3 item 111, by repealing notes 1 and 2, effective 3 October 2008. The notes formerly read:

Note 1:

If the beneficiary is an exempt entity, Division 57 of Schedule 2D to the Income Tax Assessment Act 1936 has rules about exempt entities that become taxable. It sets out what the entity is taken to have purchased its assets for when it becomes taxable.

Note 2:

If the beneficiary is a foreign resident, Subdivision 855-B sets out what happens if the beneficiary becomes an Australian resident. The beneficiary is taken to have acquired each asset owned just before becoming an Australian resident for the market value of the asset at that time.

S 128-25(2) amended by No 168 of 2006 , s 3 and Sch 4 item 73, by substituting " Subdivision 855-B " for " Subdivision 136-B " in note 2, applicable to CGT events that happen on or after 12 December 2006.

S 128-25(2) amended by No 41 of 2005.

128-25(3)    
The beneficiary can include in the *cost base or *reduced cost base of the asset any expenditure that your *legal personal representative would have been able to include at the time the asset *passes to the beneficiary. The beneficiary can include the expenditure on the day the representative incurred it.

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S 128-25 inserted by No 46 of 1998.

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