INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17A - Roll-over relief for certain disposals of assets related to small businesses  

Subdivision B - How roll-over relief is available on the disposal of an asset  

SECTION 160ZZPT   NOMINATION OF REPLACEMENT ASSETS  

160ZZPT(1)   Taxpayer may nominate replacement assets.  

Subject to subsections (2) and (3), if:

(a) there is a roll-over asset or there are roll-over assets in respect of a taxpayer in respect of a year of income; and

(b) there is a net roll-over amount that applies to the taxpayer in respect of the year of income;

the taxpayer may nominate, for the purposes of the application of this Division in respect of the net roll-over amount, one or more approved assets (a replacement asset or replacement assets ) that were acquired by the taxpayer within the period beginning one year before, and ending 2 years after, the last disposal by the taxpayer of any roll-over asset in that year of income.

160ZZPT(1AA)   Active asset may be nominated.  

An active asset is an approved asset.

160ZZPT(1AB)   Certain shares may be nominated.  

A share in a company is an approved asset in respect of a taxpayer if:

(a) the taxpayer is an individual (other than an individual who is acting as a trustee); and

(b) the company is, in respect of a year of income in which the share is acquired by the taxpayer, a private company that is a resident; and

(c) the taxpayer is the controlling individual of the company immediately after the share is acquired by the taxpayer; and

(d) the total of the market values of all the active assets of the company at the time of the acquisition of the share by the taxpayer is not less than 80% of the total of the market values of all the company's assets at that time.

160ZZPT(1AC)   Certain units in unit trusts may be nominated.  

A unit in a unit trust is an approved asset in respect of a taxpayer if:

(a) the taxpayer is an individual (other than an individual who is acting as a trustee); and

(b) the trust is, in respect of a year of income in which the unit is acquired by the taxpayer, a resident unit trust that is not a publicly traded unit trust; and

(c) the taxpayer is the controlling individual of the trust immediately after the unit is acquired by the taxpayer; and

(d) the total of the market values of all the active assets of the trust at the time of the acquisition of the unit by the taxpayer is not less than 80% of the total of the market values of all the assets of the trust at that time.

160ZZPT(1A)   When nomination to be made.  

A nomination of a replacement asset must be made before the end of 2 years after the last disposal by the taxpayer of any roll-over asset in the year of income to which the net roll-over amount relates.

160ZZPT(2)   Replacement goodwill asset cannot be nominated in respect of net non-goodwill roll-over amount.  

If the taxpayer disposes of, and immediately re-acquires, a roll-over asset, the taxpayer cannot nominate that asset as a replacement asset.

160ZZPT(3)   [Nomination]  

A taxpayer cannot nominate a replacement goodwill asset for the purposes of the application of this Division in respect of a net non-goodwill roll-over amount.

160ZZPT(4)   Consequences of nomination of replacement assets.  

If the taxpayer duly nominates a replacement asset or replacement assets for the purposes of the application of this Division in respect of a net roll-over amount, whichever of sections 160ZZPU, 160ZZPV and 160ZZPW is relevant applies to the taxpayer in respect of the disposal year of income.

160ZZPT(5)   Capital gain to accrue if no nomination of replacement assets.  

If the taxpayer does not duly nominate a replacement asset or replacement assets for the purposes of the application of this Division in respect of a net roll-over amount, a capital gain equal to the net roll-over amount is taken to have accrued to the taxpayer in the disposal year of income.