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 294-125   Pooled superannuation trust using proportionate or alternative exemption method - deemed sale and purchase of CGT asset  

Application

294-125(1)    
This section applies in relation to a CGT asset of a trust if:

(a) the trust is a pooled superannuation trust throughout the pre-commencement period; and

(b) either of the following is greater than nil:

(i) the proportion mentioned in subsection 295-400(1) of the Income Tax Assessment Act 1997 in respect of the trust for the 2016-17 income year;

(ii) if the trustee has made a choice under subsection 295-400(3) of that Act - the percentage mentioned in subsection 295-400(4) of that Act in respect of the trust for the 2016-17 income year; and

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

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

294-125(2)    
A choice made for the purposes of paragraph (1)(d):

(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 trust is required to lodge the trust ' s income tax return for the 2016-17 income year; and

(c) cannot be revoked.

Deemed sale and purchase

294-125(3)    
For the purposes of Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997 , the trust 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.