Income Tax Assessment Act 1997
(a) it is necessary for the purposes of this Part to work out the * cost base or * reduced cost base of a * pre-CGT asset owned at a particular time; and
(b) before that time:
(i) the owner was the recipient company involved in a roll-over under Subdivision 126-B in relation to a * CGT event that happened in relation to the CGT asset; or
(ii) the owner was the transferee in relation to a disposal of the CGT asset to which former section 160ZZO of the Income Tax Assessment Act 1936 applied;
the cost base or reduced cost base is worked out as if, in applying former Subdivision 126-B or former section 160ZZO in relation to the CGT event or the disposal, the provisions of that Subdivision or section applying to CGT assets * acquired on or after 20 September 1985 replaced those that applied to CGT assets acquired on or before that date.
The effect is that the owner ' s cost base or reduced cost base will be the same as that of the originating company or transferor, as is the case with post-CGT assets.