INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 115 - Discount capital gains and trusts ' net capital gains  

Subdivision 115-A - Discount capital gains  

What is a discount capital gain?

SECTION 115-30   Special rules about time of acquisition  

Entity is treated as acquiring some CGT assets early

115-30(1)  


Sections 115-25 , 115-40 , 115-45 , 115-105 , 115-110 and 115-115 (the affected sections ) apply as if an entity (the acquirer ) had acquired a *CGT asset described in an item of the table at the time mentioned in the item:


When the acquirer is treated as having acquired a CGT asset
Item The affected sections apply as if the acquirer had acquired this CGT asset: At this time:
1 A *CGT asset the acquirer *acquired in circumstances giving rise to a *same-asset roll-over (a) when the entity that owned the CGT asset before the roll-over *acquired it; or
(b) if the asset has been involved in an unbroken series of roll-overs - when the entity that owned it before the first roll-over in the series *acquired it
.
2 A *CGT asset that the acquirer *acquired as a replacement asset for a *replacement-asset roll-over (other than a roll-over covered by paragraph 115-34(1)(c)) (a) when the acquirer acquired the original asset involved in the roll-over; or
(b) if the acquirer acquired the replacement asset for a roll-over that was the last in an unbroken series of replacement-asset roll-overs (other than roll-overs covered by paragraph 115-34(1)(c)) - when the acquirer acquired the original asset involved in the first roll-over in the series
.
3 A *CGT asset the acquirer *acquired as the *legal personal representative of a deceased individual, except one that was a *pre-CGT asset of the deceased immediately before his or her death When the deceased *acquired the asset
.
4 A *CGT asset that *passed to the acquirer as the beneficiary of a deceased individual ' s estate, except one that was a *pre-CGT asset of the deceased immediately before his or her death When the deceased *acquired the asset
.
5 A *CGT asset that: When the deceased died
(a) the acquirer *acquired as the *legal personal representative of a deceased individual; and
(b) was a *pre-CGT asset of the deceased immediately before his or her death
.
6 A *CGT asset that: When the deceased died
(a) *passed to the acquirer as the beneficiary of a deceased individual ' s estate; and
(b) was a *pre-CGT asset of the deceased immediately before his or her death
.
7 The interest (or share of an interest) the acquirer is taken under section 128-50 to have *acquired in another *CGT asset that the acquirer and another individual held as joint tenants immediately before he or she died When the deceased *acquired his or her interest in the other CGT asset
.
8 (Repealed by No 133 of 2009)
.
9 A *CGT asset that:
(a) is a *membership interest in the receiving trust involved in a roll-over under Subdivision 126-G; and (a) when the acquirer *acquired the corresponding membership interest (or membership interests) in the transferring trust involved in the roll-over; or
(b) is held by the acquirer just after the transfer time for the roll-over (b) if the roll-over asset for the roll-over has been involved in an unbroken series of roll-overs under Subdivision 126-G - when the acquirer acquired the corresponding membership interest (or membership interests) in the transferring trust involved in the first roll-over in the series
.
9A A *share the acquirer *acquires by exercising an *ESS interest if: When the acquirer *acquired the *ESS interest
(a) section 83A-33 (about start ups) reduces the amount to be included in the acquirer ' s assessable income in relation to the ESS interest; and
(b) exercising the ESS interest causes Subdivision 130-B or Division 134 to apply
10 A *CGT asset that the acquirer *acquired as a received asset for a roll-over under Subdivision 310-D (a) when the transferring entity for the roll-over acquired the corresponding original asset for the roll-over; or
(b) if that original asset (or any asset corresponding to it) has been involved in an unbroken series of roll-overs - when the entity that owned the applicable asset before the first roll-over in the series acquired it
.
11 (Repealed by No 89 of 2013)

Note:

Under section 128-50 , the acquirer is taken to acquire the interest of a deceased individual in a CGT asset the acquirer and the deceased held as joint tenants immediately before the deceased ' s death (or an equal share of that interest if there are other surviving joint tenants).

115-30(1A)  


For the purposes of sections 115-105 , 115-110 and 115-115 , item 2 of the table in subsection (1) applies in relation to all * replacement-asset roll-overs, including those covered by paragraph 115-34(1)(c) .

115-30(1B)  
(Repealed by No 133 of 2009)

CGT event E8

115-30(2)  
For the purposes of applying sections 115-25 and 115-40 in relation to *CGT event E8 and the *CGT asset consisting of a beneficiary ' s interest in trust capital, it does not matter how long the trustee owned any of the assets of the trust.

Note:

Section 115-45 limits the effect of this subsection in some cases.

Relationship with Subdivision 109-A and Division 128

115-30(3)  
This section has effect despite Subdivision 109-A and Division 128 (which contain rules about the time when you *acquire a *CGT asset).


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