Income Tax (Transitional Provisions) Act 1997



Division 112 - Modifications to cost base and reduced cost base  

Subdivision 112-A - General rules  

SECTION 112-20   112-20   Market value substitution rule  
In working out the cost base and reduced cost base of a CGT asset:

(a) that you acquired before 16 August 1989; and

(b) to which paragraph 112-20(2) (b) or (c), or item 5 or 6 in the table in subsection 112-20(3) , of the Income Tax Assessment Act 1997 would apply (apart from this section);

disregard subsections 112-20(2) and (3) of that Act.


This section preserves the pre-16 August 1989 position for, among other things, shares or units issued or allotted to you by allowing the market value substitution rule to apply.


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