Tax Laws Amendment (2006 Measures No. 7) Act 2007 (55 of 2007)

Schedule 1   Small business relief for CGT events

Income Tax (Transitional Provisions) Act 1997

67   At the end of Part 3-3

Add:

Division 152 - Small business relief

Table of sections

152-5 Small business roll-over chosen but no capital gain returned

152-10 Small business roll-over not chosen and time remains to acquire a replacement asset

152-15 Amendment of assessments

152-5 Small business roll-over chosen but no capital gain returned

(1) This section applies if:

(a) you chose a roll-over under Subdivision 152-E of the Income Tax Assessment Act 1997 (or under former Division 123 of that Act) for a capital gain you made for an income year from a CGT event that happened in relation to a CGT asset before the commencement of this section; and

(b) you did not include the capital gain in working out your net capital gain for that year; and

(c) assuming that you had acquired a replacement asset before the CGT event, you would have been entitled to choose that roll-over.

(2) The capital gain is disregarded for the purposes of the Income Tax Assessment Act 1997.

(3) If you acquired a replacement asset within the period (the replacement asset period ) ending 2 years after the last CGT event in the income year for which you obtained the roll-over but the total of the first and second elements of the cost base of that asset is less than the amount of the capital gain that would, apart from this subsection, be disregarded, the amount to be disregarded is that total.

(4) However, if you do not acquire a replacement asset within the replacement asset period, that Act applies to you as if you had never chosen the roll-over, and the capital gain is not disregarded.

(5) The Commissioner may extend the replacement asset period.

152-10 Small business roll-over not chosen and time remains to acquire a replacement asset

(1) This section applies if:

(a) you made a capital gain for an income year from a CGT event that happened before the commencement of this section; and

(b) you included the capital gain in working out your net capital gain for that year; and

(c) at the commencement of this section, you have not acquired a replacement asset but the replacement asset period had not expired; and

(d) assuming that you had acquired a replacement asset before the CGT event, you would have been entitled to choose a roll-over under Subdivision 152-E of that Act.

(2) The capital gain is disregarded for the purposes of the Income Tax Assessment Act 1997.

(3) If you acquired a replacement asset within the replacement asset period but the total of the first and second elements of the cost base of that asset is less than the amount of the capital gain that would, apart from this subsection, be disregarded, the amount to be disregarded is that total.

(4) However, if you do not acquire a replacement asset within the replacement asset period, that Act applies to you as if you had never chosen the roll-over, and the capital gain is not disregarded.

(5) The Commissioner may extend the replacement asset period.

152-15 Amendment of assessments

Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment made before the commencement of this section at any time in the period of 4 years starting at that commencement for the purpose of giving effect to this Division.