Income Tax Assessment Act 1997



Division 126 - Same-asset roll-overs  

Subdivision 126-G - Transfer of assets between certain trusts  

Operative provisions

SECTION 126-230   Beneficiaries ' entitlements not be discretionary etc.  

The conditions in subsections (2) and (3) must be met:

(a) if subsection 126-225(2) applies - at all times during the period:

(i) starting at the start time; and

(ii) ending at the transfer time; and

(b) otherwise - at the transfer time. CGT event E4 is capable of happening

The first condition is met at a particular time if, at that time, *CGT event E4 is capable of happening to all of the *membership interests in each of the trusts.


A roll-over cannot be chosen if either trust is a discretionary trust.

Beneficiaries ' entitlements not discretionary

The second condition is met at a particular time if, at that time, the manner or extent to which each beneficiary of each trust can benefit from the trust is not capable of being significantly affected by the exercise, or non-exercise, of a power.

However, if both trusts are *managed investment trusts, disregard a power if the power ' s existence at that time does not significantly affect the *market value at that time of each *membership interest in each of the trusts.


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