Tax Laws Amendment (2009 Measures No. 6) Act 2010 (19 of 2010)

Schedule 1   Abolishing trust cloning and providing a CGT roll-over for certain trusts

Part 3   Other amendments

Income Tax Assessment Act 1997

16   Subsection 104-10(2)

Repeal the subsection, substitute:

(2) You dispose of a *CGT asset if a change of ownership occurs from you to another entity, whether because of some act or event or by operation of law. However, a change of ownership does not occur if you stop being the legal owner of the asset but continue to be its beneficial owner.

Note: A change in the trustee of a trust does not constitute a change in the entity that is the trustee of the trust (see subsection 960-100(2)). This means that CGT event A1 will not happen merely because of a change in the trustee.