Tax Laws Amendment (2010 Measures No. 1) Act 2010 (56 of 2010)

Schedule 6   Miscellaneous amendments

Part 11   Other minor changes

Income Tax Assessment Act 1997

142   After section 115-30

Insert:

115-32 Special rule about time of acquisition for certain replacement-asset roll-overs

(1) This section applies if:

(a) a *CGT event happens to:

(i) your *share in a company; or

(ii) your *trust voting interest, unit or other fixed interest in a trust; and

(b) you *acquired the share or interest as a replacement asset for a *replacement-asset roll-over (other than a roll-over covered by paragraph 115-34(1)(c)); and

(c) at the time of the CGT event, the company or trust:

(i) owns a *membership interest in an entity (the original entity ); and

(ii) has owned that membership interest for less than 12 months; and

(d) that membership interest is the original asset for the roll-over.

Note: This section does not affect the time when you are treated as having acquired the replacement asset. That time is worked out under item 2 of the table in subsection 115-30(1).

Application of tests about the assets of the company or trust

(2) Subsection 115-45(4) applies as if the company or trust had *acquired the original asset at least 12 months before the *CGT event, if the condition in that subsection would not be met were it to be applied to the original entity and the CGT event.

(3) Subsection 115-45(6) applies as if the company or trust had *acquired the original asset at least 12 months before the *CGT event, if the condition in subsection 115-45(5) would not be met were it to be applied to the original entity and the CGT event.

115-34 Further special rule about time of acquisition for certain replacement-asset roll-overs

(1) This section applies if:

(a) a *CGT event happens to your *share in a company; and

(b) at the time of the CGT event, you had owned the share for less than 12 months; and

(c) you *acquired the share as a replacement asset for:

(i) a *replacement-asset roll-over under Subdivision 122-A (disposal of assets by individuals or trustees to a wholly-owned company) for which you *disposed of a *CGT asset, or all the assets of a *business, to the company; or

(ii) a replacement-asset roll-over under Subdivision 122-B (disposal of assets by partners to a wholly-owned company) for which you disposed of your interests in a CGT asset, or your interests in all the assets of a business, to the company; or

(iii) a replacement-asset roll-over under Subdivision 124-N (disposal of assets by trusts to a company) for which a trust of which you were a beneficiary disposed of all of its CGT assets to the company.

Application of tests about when you acquired the share

(2) Sections 115-25 and 115-40 apply as if you had *acquired the *share at least 12 months before the *CGT event.

Application of tests about the company's assets

(3) For each asset mentioned in subparagraph (1)(c)(i), subsections 115-45(4) and (6) apply as if the company had *acquired that asset when you acquired it.

(4) For each asset mentioned in subparagraph (1)(c)(ii), subsections 115-45(4) and (6) apply as if the company had *acquired that asset when you acquired your interests in it.

(5) For each asset mentioned in subparagraph (1)(c)(iii), subsections 115-45(4) and (6) apply as if the company had *acquired that asset when the trust acquired it.

Relationship with Subdivision 109-A

(6) This section has effect despite Subdivision 109-A (which contains rules about the time of acquisition of CGT assets).


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).