Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) There are these consequences for the company in a creation case if the partners choose to obtain a roll-over.
(2) The first element of the created asset's * cost base (in the hands of the company) is the applicable amount from this table.
|
Creation case |
|
|
Event No. |
Applicable amount |
|
D1 |
the total * incidental costs incurred that relate to the trigger event |
|
D2 |
the total expenditure incurred to grant the option |
|
D3 |
the total expenditure incurred to grant the right |
|
F1 |
the total expenditure incurred on the grant, renewal or extension of the lease |
The expenditure can include a transfer of property: see section 103-5.
(3) The first element of the created asset's * reduced cost base (in the hands of the company) is worked out similarly.
Contents
Chapter 3--Specialist liability rules i
Part 3-3--Capital gains and losses: special topics i
Division 124--Replacement-asset roll-overs 1
Guide to Division 124 2
124-1..... What this Division is about ................................................................. 2
124-5..... How to find your way around this Division ....................................... 2
Subdivision 124-A--General rules 3
124-10... Your ownership of one CGT asset ends ............................................. 3
124-15... Your ownership of more than one CGT asset ends ............................ 4
Subdivision 124-B--Asset compulsorily acquired, lost or destroyed 6
When a roll-over is available 6
124-70... Events giving rise to a roll-over .......................................................... 6
124-75... Other requirements if you receive money ............................................ 8
124-80... Other requirements if you receive an asset .......................................... 9
The consequences of a roll-over being available 10
124-85... Consequences for receiving money ................................................... 10
124-90... Consequences for receiving an asset ................................................. 12
124-95... You receive both money and an asset ............................................... 12
Subdivision 124-C--Statutory licences 15
124-140. New statutory licences ...................................................................... 15
124-145. Rollover consequences--capital gain or loss disregarded ................. 17
124-150. Rollover consequences--partial roll-over ......................................... 17
124-155. Roll-over consequences--all original licences were post-CGT ......... 17
124-160. Roll-over consequences--all original licences were pre-CGT .......... 18
124-165. Roll-over consequences--some original licences were pre-CGT, others were post-CGT 18
Subdivision 124-D--Strata title conversion 19
124-190. Strata title conversion ........................................................................ 19
Subdivision 124-E--Exchange of shares or units 20
124-240. Exchange of shares in the same company ......................................... 20
124-245. Exchange of units in the same unit trust ............................................ 21
Subdivision 124-F--Exchange of rights or options 21
124-295. Exchange of rights or option to acquire shares in a company ............ 21
124-300. Exchange of rights or option to acquire units in a unit trust .............. 22
Subdivision 124-G--Exchange of shares in one company for shares in another company 24
Guide to Subdivision 124-G 24
124-350. What this Subdivision is about .......................................................... 24
124-355. Summary of rules .............................................................................. 25
124-360. Disposal of shares in one company for shares in another one ........... 25
124-365. Other requirements to be satisfied ..................................................... 26
Redemption or cancellation case 27
124-370. Redemption or cancellation of shares in one company for shares in another one 27
124-375. Other requirements to be satisfied ..................................................... 28
Rules applying to both cases 29
124-380. Requirements to be satisfied in both cases ........................................ 29
124-382. Special rules for ADI restructures ..................................................... 30
Consequences for the interposed company unless consolidated group continues 32
124-385. Consequences for the interposed company ....................................... 32
Additional consequences for member if shares are trading stock or revenue assets 33
124-390. Deferral of profit or loss on shares ................................................... 33
Subdivision 124-H--Exchange of units in a unit trust for shares in a company 34
Guide to Subdivision 124-H 34
124-435. What this Subdivision is about .......................................................... 34
124-440. Summary of rules .............................................................................. 35
124-445. Disposal of units in a unit trust for shares in a company ................... 36
124-450. Other requirements to be satisfied ..................................................... 36
Redemption or cancellation case 37
124-455. Redemption or cancellation of units in a unit trust for shares in a company 37
124-460. Other requirements to be satisfied ..................................................... 38
Rules applying to both cases 39
124-465. Requirements to be satisfied in both cases ........................................ 39
Consequences for the company 40
124-470. Consequences for the company ......................................................... 40
Subdivision 124-I--Conversion of a body to an incorporated company 41
124-520. Conversion of a body to an incorporated company ........................... 41
Subdivision 124-J--Crown leases 42
Guide to Subdivision 124-J 42
124-570. What this Subdivision is about .......................................................... 42
124-575. Extension or renewal of Crown lease ................................................ 42
124-580. Meaning of Crown lease ................................................................... 43
124-585. Original right differs in area from new right ..................................... 43
124-590. Part of original right excised ............................................................. 44
124-595. Treating parts of new right as separate assets .................................... 44
124-600. What is the roll-over? ........................................................................ 45
124-605. Change of lessor ............................................................................... 46
Subdivision 124-K--Depreciating assets 46
124-655. Roll-over for depreciating assets ....................................................... 46
124-660. Right granted to associate .................................................................. 47
Subdivision 124-L--Prospecting and mining entitlements 47
Guide to Subdivision 124-L 47
124-700. What this Subdivision is about .......................................................... 47
124-705. Extension or renewal of prospecting or mining entitlement ............... 48
124-710. Meaning of prospecting entitlement and mining entitlement .............. 49
124-715. Original entitlement differs in area from new entitlement .................. 49
124-720. Part of original entitlement excised .................................................... 50
124-725. Treating parts of new entitlement as separate assets .......................... 50
124-730. What is the roll-over? ........................................................................ 51
Subdivision 124-M--Scrip for scrip roll-over 52
Guide to Subdivision 124-M 52
124-775. What this Subdivision is about .......................................................... 52
124-780. Replacement of shares ....................................................................... 53
124-781. Replacement of trust interests ............................................................ 56
124-782. Transfer or allocation of cost base of shares acquired by acquiring entity etc. 59
124-783. Meaning of significant stakeholder , common stakeholder , significant stake and common stake 60
124-784. Cost base of equity or debt given by acquiring entity to ultimate holding company 63
124-784AWhen arrangement is a restructure ................................................... 64
124-784BWhat is the cost base and reduced cost base when
arrangement is a restructure?
.............................................................
66
124-784CCost base of equity or debt given by acquiring entity to
ultimate holding company
.................................................................
69
124-785. What is the roll-over? ........................................................................ 70
124-790. Partial roll-over ................................................................................. 71
124-795. Exceptions ......................................................................................... 71
124-800. Interest received for pre-CGT interest ............................................... 72
124-810. Certain companies and trusts not regarded as having 300 members or beneficiaries 72
Subdivision 124-N--Disposal of assets by a trust to a company 74
Guide to Subdivision 124-N 74
124-850. What this Subdivision is about .......................................................... 74
124-855. What this Subdivision deals with ...................................................... 75
124-860. Requirements for roll-over ................................................................ 75
124-865. Entities both choose the roll-over ...................................................... 77
124-870. Roll-over for owner of units or interests in a trust ............................ 77
124-875. Effect on the transferor and transferee ............................................... 78
Subdivision 124-O--FSR (financial services reform) transitions 79
Same owner roll-overs 80
124-880. Old licence roll-over (same owner) ................................................... 80
124-885. Qualified licence roll-over (same owner) .......................................... 81
124-890. Rights roll-over (same owner) .......................................................... 81
124-895. Consequences of a same owner roll-over .......................................... 82
New owner roll-overs 83
124-900. Old licence roll-over (new owner) .................................................... 83
124-905. Qualified licence roll-over (new owner) ............................................ 85
124-910. Rights roll-over (new owner) ............................................................ 86
124-915. Consequences of a new owner roll-over (where one CGT asset comes to an end) 87
124-920. Consequences of a new owner roll-over (where more than one CGT asset comes to an end) 89
Extension of FSR transition period 91
124-925. Special extension of the 10 March 2004 cut-off date (same owner roll-overs) 91
124-930. Special extension of the 10 March 2004 cut-off date (new owner roll-overs) 91
Subdivision 124-P--Exchange of a membership interest in an MDO for a membership interest in another MDO 92
Guide to Subdivision 124-P 92
124-975. What this Subdivision is about .......................................................... 92
124-980. Exchange of membership interests in an MDO ................................. 92
124-985. What the roll-over is for post-CGT interests ..................................... 93
124-990. Partial roll-over ................................................................................. 94
124-995. Pre-CGT interests ............................................................................. 94
Subdivision 124-Q--Exchange of stapled ownership interests for ownership interests in a unit trust 94
Guide to Subdivision 124-Q 94
124-1040What this Subdivision is about ......................................................... 94
124-1045Exchange of stapled securities .......................................................... 95
124-1050Conditions ........................................................................................ 96
124-1055Consequences of the roll-over for exchanging members .................. 97
124-1060Consequences of the roll-over for interposed trust ........................... 98
124-1065Certain foreign holders disregarded .................................................. 99
Subdivision 124-R--Water entitlements 100
Guide to Subdivision 124-R 100
124-1100What this Subdivision is about ....................................................... 100
124-1105Replacement water entitlements roll-over ........................................ 101
124-1110Roll-over consequences--capital gain or loss disregarded ............. 103
124-1115Roll-over consequences--partial roll-over ...................................... 103
124-1120Roll-over consequences--all original entitlements post-CGT ......... 104
124-1125Roll-over consequences--all original entitlements pre-CGT .......... 105
124-1130Roll-over consequences--some original entitlements
pre-CGT, others post-CGT
.............................................................
105
124-1135Reduction in water entitlements roll-over ........................................ 106
124-1140Roll-over consequences--capital gain or loss disregarded ............. 106
124-1145Roll-over consequences--all original entitlements post-CGT ......... 106
124-1150Roll-over consequences--some original entitlements
pre-CGT, others post-CGT
.............................................................
107
Variation to CGT asset case 108
124-1155Roll-over for variation to CGT asset ............................................... 108
124-1160Roll-over consequences .................................................................. 108
124-1165Roll-over consequences--partial roll-over ...................................... 108
Division 125--Demerger relief 109
Guide to Division 125 109
125-1..... What this Division is about ............................................................. 109
Subdivision 125-A--Object of this Division 110
125-5..... Object of this Division .................................................................... 110
Subdivision 125-B--Consequences for owners of interests 110
Guide to Subdivision 125-B 110
125-50... Guide to Subdivision 125-B ........................................................... 110
125-55... When a roll-over is available for a demerger ................................... 111
125-60... Meaning of ownership interest and related terms ............................ 111
125-65... Meanings of demerger group , head entity and demerger subsidiary 113
125-70... Meanings of demerger , demerged entity and demerging entity ....... 114
125-75... Exceptions to subsection 125-70(2) ................................................ 118
125-80... What is the roll-over? ...................................................................... 120
125-85... Cost base adjustments where CGT event happens but no roll-over chosen 122
125-90... Cost base adjustments where no CGT event ................................... 123
125-95... No other cost base adjustment after demerger ................................. 123
125-100. No further demerger relief in some cases ........................................ 123
Subdivision 125-C--Consequences for members of demerger group 124
Guide to Subdivision 125-C 124
125-150. Guide to Subdivision 125-C ........................................................... 124
125-155. Certain capital gains or losses disregarded for demerging entity ..... 124
125-160. No CGT event J1 ............................................................................ 124
125-165. Adjusted capital loss for value shift under a demerger .................... 125
125-170. Reduced cost base reduction if demerger asset subject to roll-over . 125
Subdivision 125-D--Corporate unit trusts and public trading trusts 126
Guide to Subdivision 125-D 126
125-225. Guide to Subdivision 125-D ........................................................... 126
125-230. Application of Division to corporate unit trusts and public trading trusts 126
Division 126--Same-asset roll-overs 127
Guide to Division 126 127
126-1..... What this Division is about ............................................................. 127
Subdivision 126-A--Marriage or relationship breakdowns 127
126-5..... CGT event involving spouses ......................................................... 128
126-15... CGT event involving company or trustee ........................................ 130
126-20... Subsequent CGT event happening to roll-over asset where transferor was a CFC or a non-resident trust 133
126-25... Conditions for the purposes of subsections 126-5(3A) and 126-15(5) 133
Subdivision 126-B--Companies in the same wholly-owned group 134
Guide to Subdivision 126-B 134
126-40... What this Subdivision is about ........................................................ 134
126-45... Roll-over for members of wholly-owned group ............................. 135
126-50... Requirements for roll-over .............................................................. 135
126-55... When there is a roll-over ................................................................. 138
126-60... Consequences of roll-over .............................................................. 138
126-75... Originating company is a CFC ........................................................ 139
126-85... Effect of roll-over on certain liquidations ........................................ 140
Subdivision 126-C--Changes to trust deeds 142
Guide to Subdivision 126-C 142
126-125. What this Subdivision is about ........................................................ 142
126-130. Changes to trust deeds .................................................................... 143
126-135. Consequences of roll-over .............................................................. 143
Subdivision 126-D--Small superannuation funds 144
126-140. CGT event involving small superannuation funds .......................... 144
Subdivision 126-E--Entitlement to shares after demutualisation and scrip for scrip roll-over 148
Guide to Subdivision 126-E 148
126-185. What this Subdivision is about ........................................................ 148
126-190. When there is a roll-over ................................................................. 148
126-195. Consequences of roll-over .............................................................. 149
Subdivision 126-F--Transfer of assets of superannuation funds to meet licensing requirements 149
Guide to Subdivision 126-F 149
126-200. What this Subdivision is about ........................................................ 149
126-205. Object of this Subdivision ............................................................... 150
126-210. When there is a roll-over and what its effects are ............................ 150
Subdivision 126-G--Transfer of assets between certain trusts 152
Guide to Subdivision 126-G 152
126-215. What this Subdivision is about ........................................................ 152
126-220. Object of this Subdivision ............................................................... 153
126-225. When a roll-over may be chosen ..................................................... 153
126-230. Beneficiaries' entitlements not be discretionary etc. ........................ 154
126-235. Exceptions for roll-over .................................................................. 155
126-240. Consequences for the trusts ............................................................ 157
126-245. Consequences for beneficiaries--general approach for working out cost base etc. 158
126-250. Consequences for beneficiaries--other approach for working out cost base etc. 160
126-255. No other cost base etc. adjustment for beneficiaries ........................ 161
126-260. Giving information to beneficiaries ................................................. 161
Division 128--Effect of death 164
Guide to Division 128 164
128-1..... What this Division is about ............................................................. 164
128-10... Capital gain or loss when you die is disregarded ............................ 164
128-15... Effect on the legal personal representative or beneficiary ................ 165
128-20... When does an asset pass to a beneficiary? ...................................... 167
128-25... The beneficiary is a trustee of a superannuation fund etc. ............... 168
Special rules for joint tenants 169
128-50... Joint tenants .................................................................................... 169
Guide to Division 130 170
130-1..... What this Division is about ............................................................. 170
Subdivision 130-A--Bonus shares and units 171
Guide to Subdivision 130-A 171
130-15... Acquisition time and cost base of bonus equities ............................ 171
130-20... Issue of bonus shares or units ......................................................... 172
130-40... Exercise of rights ............................................................................ 176
130-45... Timing rules .................................................................................... 179
130-50... Application to options ..................................................................... 179
Subdivision 130-C--Convertible interests 179
130-60... Shares or units acquired by converting a convertible interest .......... 179
Subdivision 130-D--Employee share schemes 182
130-75... Objects of Subdivision .................................................................... 182
130-80... ESS interests acquired under employee share schemes ................... 182
130-85... Interests in employee share trusts .................................................... 184
130-90... Shares held by employee share trusts .............................................. 185
130-95... Shares and rights in relation to ESS interests .................................. 186
130-97... Application of certain provisions of Division 83A ......................... 187
Subdivision 130-E--Exchangeable interests 187
130-100. Exchangeable interest ...................................................................... 187
130-105. Shares acquired in exchange for the disposal or redemption of an exchangeable interest 188
132-1..... Lessee incurs expenditure to get lease term varied or waived .......... 191
132-5..... Lessor pays lessee for improvements .............................................. 191
132-10... Grant of a long-term lease ............................................................... 191
132-15... Lessee of land acquires reversionary interest of lessor .................... 192
134-1..... Exercise of options .......................................................................... 194
Division 149--When an asset stops being a pre-CGT asset 197
Subdivision 149-A--Key concepts 197
149-10... What is a pre-CGT asset? ................................................................ 197
149-15... Majority underlying interests in a CGT asset .................................. 198
Subdivision 149-B--When asset of non-public entity stops being a pre-CGT asset 199
149-25... Which entities are affected ............................................................... 199
149-30... Effects if asset no longer has same majority underlying ownership 199
149-35... Cost base elements of asset that stops being a pre-CGT asset ......... 200
Subdivision 149-C--When asset of public entity stops being a pre-CGT asset 200
149-50... Which entities are affected ............................................................... 201
149-55... Entity to give the Commissioner evidence periodically as to whether asset still has same majority underlying ownership ........................................................................................................ 202
149-60... What the evidence must show ......................................................... 203
149-70... Effects if asset no longer has same majority underlying ownership 205
149-75... Cost base elements of asset that stops being a pre-CGT asset ......... 205
149-80... No more evidence needed after asset stops being a pre-CGT asset . 205
Subdivision 149-F--How to treat a "demutualised" public entity 206
149-162. Subdivision applies only if entity gives sufficient evidence ............ 206
149-165. Members treated as having underlying interests in assets until demutualisation 206
149-170. Effect of demutualisation of interposed company ............................ 207
Division 152--Small business relief 209
Guide to Division 152 209
152-1..... What this Division is about ............................................................. 209
Subdivision 152-A--Basic conditions for relief under this Division 210
Guide to Subdivision 152-A 210
152-5..... What this Subdivision is about ........................................................ 210
Basic conditions for relief 212
152-10... Basic conditions for relief ............................................................... 212
152-12... Special conditions for CGT event D1 ............................................. 215
Maximum net asset value test 215
152-15... Maximum net asset value test .......................................................... 215
152-20... Meaning of net value of the CGT assets ......................................... 216
152-35... Active asset test ............................................................................... 218
152-40... Meaning of active asset ................................................................... 218
152-45... Continuing time periods for involuntary disposals .......................... 222
Treatment of passively held CGT assets 224
152-47... Spouses or children taken to be affiliates for certain passively held CGT assets 224
152-48... Working out an entity's aggregated turnover for passively held CGT assets 225
152-49... Businesses that are winding up ....................................................... 226
Significant individual test 226
152-50... Significant individual test ................................................................ 226
152-55... Meaning of significant individual .................................................... 227
CGT concession stakeholder 227
152-60... Meaning of CGT concession stakeholder ....................................... 227
Small business participation percentage 227
152-65... Small business participation percentage .......................................... 227
152-70... Direct small business participation percentage ................................ 227
152-75... Indirect small business participation percentage .............................. 229
Nomination of controllers of discretionary trust 230
152-78... Trustee of discretionary trust may nominate beneficiaries to be controllers of trust 230
CGT event happens to asset or interest within 2 years of an individual's death 231
152-80... CGT event happens to an asset or interest within 2 years of individual's death 231
Subdivision 152-B--Small business 15-year exemption 232
Guide to Subdivision 152-B 232
152-100. What this Subdivision is about ........................................................ 232
152-105. 15-year exemption for individuals ................................................... 234
152-110. 15-year exemption for companies and trusts ................................... 234
152-115. Continuing time periods for involuntary disposals .......................... 235
152-120. Discretionary trusts need not have a significant individual in a loss year or nil income year 236
152-125. Payments to company's or trust's CGT concession stakeholders are exempt 237
Subdivision 152-C--Small business 50% reduction 238
Guide to Subdivision 152-C 238
152-200. What this Subdivision is about ........................................................ 238
152-205. You get the small business 50% reduction ...................................... 239
152-210. You may also get the small business retirement exemption and small business roll-over relief 239
152-215. 15-year rule has priority .................................................................. 240
152-220. You may choose not to apply this Subdivision ............................... 240
Subdivision 152-D--Small business retirement exemption 240
Guide to Subdivision 152-D 240
152-300. What this Subdivision is about ........................................................ 240
152-305. Choosing the exemption .................................................................. 241
152-310. Consequences of choice .................................................................. 242
152-315. Choosing the amount to disregard ................................................... 243
152-320. Meaning of CGT retirement exemption limit .................................. 244
152-325. Company or trust conditions ........................................................... 244
152-330. 15-year rule has priority .................................................................. 247
Subdivision 152-E--Small business roll-over 247
Guide to Subdivision 152-E 247
152-400. What this Subdivision is about ........................................................ 247
152-410. When you can obtain the roll-over .................................................. 248
152-415. What the roll-over consists of ......................................................... 248
152-420. Rules where an individual who has obtained a roll-over dies .......... 248
152-430. 15-year rule has priority .................................................................. 249
Table of Subdivisions
Guide to Division 124
124-A General rules
124-B Asset compulsorily acquired, lost or destroyed
124-C Statutory licences
124-D Strata title conversion
124-E Exchange of shares or units
124-F Exchange of rights or options
124-G Exchange of shares in one company for shares in another company
124-H Exchange of units in a unit trust for shares in a company
124-I Conversion of a body to an incorporated company
124-J Crown leases
124-K Depreciating assets
124-L Prospecting and mining entitlements
124-M Scrip for scrip roll-over
124-N Disposal of assets by a trust to a company
124-O FSR (financial services reform) transitions
124-P Exchange of a membership interest in an MDO for a membership interest in another MDO
124-Q Exchange of stapled ownership interests for ownership interests in a unit trust
124-R Water entitlements