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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 294.115

Superannuation funds using the proportionate method--deemed sale and purchase of CGT asset

Application

  (1)   This section applies in relation to a CGT asset of a fund if:

  (a)   the fund is a complying superannuation fund throughout the pre - commencement period; and

  (b)   the proportion mentioned in subsection   295 - 390(3) of the Income Tax Assessment Act 1997 in respect of the fund for the 2016 - 17 income year is greater than nil; and

  (c)   the fund held the asset throughout the pre - commencement period; and

  (d)   throughout the pre - commencement period, the asset:

  (i)   was not a segregated current pension asset of the fund; and

  (ii)   was not a segregated non - current asset of the fund; and

  (e)   the trustee of the fund makes a choice for the purposes of this paragraph in respect of the asset in accordance with subsection   (2).

  (2)   A choice made for the purposes of paragraph   (1)(e):

  (a)   is to be in the approved form; and

  (b)   can only be made on or before the day by which the trustee of the fund is required to lodge the fund's income tax return for the 2016 - 17 income year; and

  (c)   cannot be revoked.

Deemed sale and purchase

  (3)   For the purposes of Parts   3 - 1 and 3 - 3 of the Income Tax Assessment Act 1997 , the fund is taken:

  (a)   to have sold, immediately before 1   July 2017, the asset for a consideration equal to its market value; and

  (b)   to have purchased the asset again just after that sale for a consideration equal to its market value.


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