INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 294 - Transfer balance cap  

Subdivision 294-B - CGT relief  

SECTION 294-115   Superannuation funds using the proportionate method - deemed sale and purchase of CGT asset  

Application

294-115(1)  
This section applies in relation to a CGT asset of a fund if:


(a) the fund is a complying superannuation fund throughout the pre-commencement period; and


(b) the proportion mentioned in subsection 295-390(3) of the Income Tax Assessment Act 1997 in respect of the fund for the 2016-17 income year is greater than nil; and


(c) the fund held the asset throughout the pre-commencement period; and


(d) throughout the pre-commencement period, the asset:


(i) was not a segregated current pension asset of the fund; and

(ii) was not a segregated non-current asset of the fund; and


(e) the trustee of the fund makes a choice for the purposes of this paragraph in respect of the asset in accordance with subsection (2).

294-115(2)  
A choice made for the purposes of paragraph (1)(e):


(a) is to be in the approved form; and


(b) can only be made on or before the day by which the trustee of the fund is required to lodge the fund ' s income tax return for the 2016-17 income year; and


(c) cannot be revoked. Deemed sale and purchase

294-115(3)  
For the purposes of Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997 , the fund is taken:


(a) to have sold, immediately before 1 July 2017, the asset for a consideration equal to its market value; and


(b) to have purchased the asset again just after that sale for a consideration equal to its market value.




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