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You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1052097443908

Date of advice: 21 March 2023

Ruling

Subject: CGT - marriage breakdown rollover

Question

Will the marriage breakdown rollover provisions under Subdivision 126-A of the Income Tax Assessment Act 1997 apply to the property transferred to you by your ex-spouse?

Answer

Yes.

You have received the property in compliance with a court order made under the Family Law Act 1975.

Therefore, as the conditions for the marriage breakdown rollover under section 126-5 of the ITAA 1997 have been met, in accordance with the principles contained in Taxation Determination 1999/60 the rollover will automatically apply.

As a result, in relation to your tax affairs, any capital gain or capital loss made from receiving the property in accordance with the Court Order is deferred until you dispose of the property.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You and your ex-spouse purchased a property.

You are the Respondent, and your ex-spouse is the Applicant.

In a Court Order you and your ex-spouse were ordered by the Family Court of Australia to do the following:

  1. That within 30 days from the date of these orders, the Respondent do all such acts and things and sign all necessary documents to transfer their interest in the property ("the property") as to a XX share to the Applicant and a XX share to the Second Respondent and the Third Respondent jointly.
  2. That the Applicant contemporaneously and in exchange for the transfer referred to in order 1:
    1. Pay the respondent the sum of money; and
    2. Assume all liability for and indemnify the Respondent against all outgoings in respect of the property (jointly and severally with the Second Respondent and Third Respondent).
  3. That the Second Respondent and Third Respondent contemporaneously and in exchange for the transfer referred to in order 1:
    1. Pay the Respondent the total sum of $XXX,000; and
    2. Assume all liability for and indemnify the Respondent against all outgoings in respect of the property (jointly and severally with the Applicant).

Relevant legislative provisions

Income Tax Assessment Act 1997 section 102-20

Income Tax Assessment Act 1997 section 104-10

Income Tax Assessment Act 1997 section 126-5


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