Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to an election under subsection (5), this section applies to a CGT asset held by a taxpayer where all of the following conditions are satisfied:
(a) the asset was owned by the taxpayer at the end of 30 June 1991;
(b) if there had been a disposal (within the meaning of former Part IIIA) of the asset by the taxpayer on 1 July 1991, that Part would have applied in respect of that disposal (ignoring former section 160ZZF and former Divisions 5A, 7A and 17 of that Part);
(c) if:
(i) there had been a disposal (within the meaning of former Part IIIA) of the asset by the taxpayer on 1 July 1991; and
(ii) profits or gains of a capital nature had been derived by the taxpayer in respect of that disposal; and
(iii) former section 24BB had not been enacted; and
(iv) former section 24BA had applied in relation to the year of income in which disposal occurred;
the profits or gains would have been exempt income under this Division.
(2) For the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997 :
(a) except for the purposes of determining the cost base to the taxpayer of the asset--the asset is taken to have been acquired by the taxpayer on 30 June 1991; and
(b) the first element of the asset's cost base in the hands of the taxpayer (at the end of 30 June 1991) is its market value at that time.
(3) Despite Division 121 of the Income Tax Assessment Act 1997 , the taxpayer is not required to keep records of the date of acquisition of the asset, or its cost base on 30 June 1991.
(5) If, as at the date on which a CGT event happens in relation to the asset, the taxpayer has complied with former section 160ZZU of this Act and Division 121 of the Income Tax Assessment Act 1997 in relation to the asset, the taxpayer may elect that this section does not apply in relation to the asset.