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INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 294.125

Pooled superannuation trust using proportionate or alternative exemption method--deemed sale and purchase of CGT asset

Application

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

                     (a)  the trust is a pooled superannuation trust throughout the pre-commencement period; and

                     (b)  either of the following is greater than nil:

                              (i)  the proportion mentioned in subsection 295-400(1) of the Income Tax Assessment Act 1997 in respect of the trust for the 2016-17 income year;

                             (ii)  if the trustee has made a choice under subsection 295-400(3) of that Act--the percentage mentioned in subsection 295-400(4) of that Act in respect of the trust for the 2016-17 income year; and

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

                     (d)  the trustee of the trust 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)(d):

                     (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 trust is required to lodge the trust'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 trust 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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