New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)

Schedule 5   Consolidation: allocable cost amount for a joining trust

Part 1   New provisions inserted in the Income Tax Assessment Act 1997

3   At the end of subsection 711-15(1)

Add:

; and (d) finally, if the leaving entity is a trust - for each membership interest in the trust that satisfies these conditions:

(i) it is neither a unit nor an interest in the trust;

(ii) the member of the old group that held it began to hold it only because money or property was settled on the trust;

(iii) it either had no*cost base or it had a cost base of nil;

reducing the result under paragraph (c) to nil.

Note: Compare the treatment of such interests when an entity joins a group: see section 713-20.