INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17 - Miscellaneous roll-over relief  

SECTION 160ZZM   TRANSFER OF ASSET BETWEEN SPOUSES UPON BREAKDOWN OF MARRIAGE  

160ZZM(1)   [Application of section]  

Where a taxpayer disposes of an asset to his or her spouse pursuant to -

(a) an order of a court under the Family Law Act 1975 or under a corresponding law of a foreign country; or

(b) a maintenance agreement approved by a court under section 87 of the Family Law Act 1975 or a corresponding agreement approved by, or otherwise sanctioned by, a court under a corresponding law of a foreign country; or

(ba) an order of a court under a law of a State or Territory or of a foreign country relating to the breakdown of de facto marriages;

this Part other than this section does not apply in respect of the disposal and -

(c) if the asset was acquired by the taxpayer before 20 September 1985 - the spouse shall be deemed to have acquired the asset before that date; or

(d) if the asset was acquired by the taxpayer on or after 20 September 1985 -

(i) the spouse shall be deemed to have paid as consideration in respect of the acquisition of the asset an amount equal to -

(A) for the purpose of ascertaining whether a capital gain accrued to the spouse in the event of a subsequent disposal of the asset by the spouse - the amount that would have been the indexed cost base to the taxpayer of the asset for the purposes of this Part if this Part had applied in respect of the disposal of the asset by the taxpayer to the spouse; or

(B) for the purpose of ascertaining whether the spouse incurred a capital loss in the event of a subsequent disposal of the asset by the spouse - the amount that would have been the reduced cost base to the taxpayer of the asset for the purposes of this Part if this Part had applied in respect of the disposal of the asset by the taxpayer to the spouse; and

(ii) in the case of an asset that was a personal-use asset of the taxpayer - the asset shall be taken for the purposes of this Part to be a personal-use asset of the spouse.

160ZZM(2)   [Asset disposed of by spouse within 12 months of taxpayer's acquisition]  

If in the case of an asset to which paragraph (1)(d) applies, the asset was disposed of by the spouse within 12 months after the day on which the asset was acquired by the taxpayer, the reference in that paragraph to the indexed cost base to the taxpayer of the asset shall be construed as a reference to the cost base to the taxpayer of the asset.

160ZZM(3)   [``spouse'']  

In this section, ``spouse'' , in relation to a taxpayer, includes a former spouse of the taxpayer.