Income Tax Assessment Act 1997
A roll-over may be chosen for a *CGT asset (the roll-over asset ) if:
(a) the trustee of a trust (the transferring trust ):
(i) creates a trust (the receiving trust ), by declaration or settlement, over one or more CGT assets that include the roll-over asset; or
at a particular time (the transfer time ); and
(ii) transfers the roll-over asset to an existing trust (the receiving trust );
(b) if subparagraph (a)(ii) applies - the receiving trust has no CGT assets immediately before the transfer time, other than any or all of the following:
(i) small amounts of cash or debt;
(ii) its rights under an *arrangement, if (collectively) those rights only facilitate the transfer of assets to it from the transferring trust; and
(c) just after the transfer time:
(i) each of the trusts has the same beneficiaries; and
(ii) the receiving trust has the same *classes of *membership interests that the transferring trust had just before, and has just after, the transfer time; and
(iii) the sum of the *market values of each beneficiary ' s membership interests of a particular class in both trusts is substantially the same as the sum of the market values, just before the transfer time, of the beneficiary ' s membership interests of that class in both trusts; and
(d) the requirement in section 126-230 is met; and
(e) the exceptions in section 126-235 do not apply.
However, paragraph (1)(b) does not apply if:
(a) the roll-over asset is transferred to the receiving trust under an *arrangement; and
(b) the roll-over asset was an asset of the transferring trust just before the arrangement was made; and
(c) at least one other asset of the receiving trust:
(i) is an asset for which a roll-over was obtained under this Subdivision for the trusts; and
(ii) is an asset over which the receiving trust was created, or was transferred by the transferring trust to the receiving trust under the arrangement; and
(d) the transfer time is in the income year for the transferring trust that includes the earliest transfer time (the start time ) for the assets covered by paragraph (c). Obtaining the roll-over 126-225(3)
The roll-over only happens if both the trustee of the transferring trust and the trustee of the receiving trust choose to obtain it.
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