Tax Laws Amendment (2010 Measures No. 1) Act 2010 (56 of 2010)

Schedule 6   Miscellaneous amendments

Part 11   Other minor changes

Income Tax Assessment Act 1997

142   After section 115-30

Insert:

115-32 Special rule about time of acquisition for certain replacement-asset roll-overs

(1) This section applies if:

(a) a *CGT event happens to:

(i) your *share in a company; or

(ii) your *trust voting interest, unit or other fixed interest in a trust; and

(b) you *acquired the share or interest as a replacement asset for a *replacement-asset roll-over (other than a roll-over covered by paragraph 115-34(1)(c)); and

(c) at the time of the CGT event, the company or trust:

(i) owns a *membership interest in an entity (the original entity ); and

(ii) has owned that membership interest for less than 12 months; and

(d) that membership interest is the original asset for the roll-over.

Note: This section does not affect the time when you are treated as having acquired the replacement asset. That time is worked out under item 2 of the table in subsection 115-30(1).

Application of tests about the assets of the company or trust

(2) Subsection 115-45(4) applies as if the company or trust had *acquired the original asset at least 12 months before the *CGT event, if the condition in that subsection would not be met were it to be applied to the original entity and the CGT event.

(3) Subsection 115-45(6) applies as if the company or trust had *acquired the original asset at least 12 months before the *CGT event, if the condition in subsection 115-45(5) would not be met were it to be applied to the original entity and the CGT event.

115-34 Further special rule about time of acquisition for certain replacement-asset roll-overs

(1) This section applies if:

(a) a *CGT event happens to your *share in a company; and

(b) at the time of the CGT event, you had owned the share for less than 12 months; and

(c) you *acquired the share as a replacement asset for:

(i) a *replacement-asset roll-over under Subdivision 122-A (disposal of assets by individuals or trustees to a wholly-owned company) for which you *disposed of a *CGT asset, or all the assets of a *business, to the company; or

(ii) a replacement-asset roll-over under Subdivision 122-B (disposal of assets by partners to a wholly-owned company) for which you disposed of your interests in a CGT asset, or your interests in all the assets of a business, to the company; or

(iii) a replacement-asset roll-over under Subdivision 124-N (disposal of assets by trusts to a company) for which a trust of which you were a beneficiary disposed of all of its CGT assets to the company.

Application of tests about when you acquired the share

(2) Sections 115-25 and 115-40 apply as if you had *acquired the *share at least 12 months before the *CGT event.

Application of tests about the company's assets

(3) For each asset mentioned in subparagraph (1)(c)(i), subsections 115-45(4) and (6) apply as if the company had *acquired that asset when you acquired it.

(4) For each asset mentioned in subparagraph (1)(c)(ii), subsections 115-45(4) and (6) apply as if the company had *acquired that asset when you acquired your interests in it.

(5) For each asset mentioned in subparagraph (1)(c)(iii), subsections 115-45(4) and (6) apply as if the company had *acquired that asset when the trust acquired it.

Relationship with Subdivision 109-A

(6) This section has effect despite Subdivision 109-A (which contains rules about the time of acquisition of CGT assets).