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  • Conditions to be satisfied



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    You can choose to obtain a rollover if:

    • you satisfy the basic conditions for the gain
    • you choose one or more CGT assets as replacement assets within the period starting one year before and ending two years after the last CGT event happens in the income year for which you choose the rollover
    • the replacement asset
      • is acquired within that same period (the Commissioner may extend the time limit)
      • is an active asset when you acquire it, or an active asset by the end of two years after the last CGT event happens in the income year for which you choose the rollover. A depreciating asset such as plant can be a replacement asset
    • if the replacement asset is a share in a company or an interest in a trust, you, or an entity connected with you, must be a controlling individual of that company or trust just after you acquire the share or interest. As the share or interest also needs to be an active asset this means the company or trust must satisfy the 80% test. That is, the market value of the active assets and certain capital proceeds of the company or trust must be 80% or more of the total of the market value of all the assets of the company or trust.


    Jordan owns 50% of the shares in Company A and Company B. He is therefore a controlling individual of both companies. The companies are connected with Jordan because he controls both of them.

    Company A owns land which it leases to Jordan for use in a business. It sells the land at a profit and buys shares in Company B as replacement assets. All of Company B's assets are active assets.

    The replacement asset test is satisfied because the shares are active assets and Jordan is connected with Company A and is a controlling individual of Company B.

    End of example
    Last modified: 10 Sep 2007QC 27357