Tax Laws Amendment (2004 Measures No. 6) Act 2005 (23 of 2005)

Schedule 12   Transfer of life insurance business

Income Tax (Transitional Provisions) Act 1997

9   Subsection 126-150(3)

Repeal the subsection, substitute:

(3) If:

(a) the roll-over asset is a right or convertible interest referred to in Division 130, or an option referred to in Division 134, of the Income Tax Assessment Act 1997 or an exchangeable interest; and

(b) the recipient company acquires another CGT asset by exercising the right or option or by converting the convertible interest or in exchange for the disposal or redemption of the exchangeable interest;

the other asset cannot become trading stock of the recipient company just after the recipient company acquired it.