Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 294.130

Application

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

  (a)   section   294 - 125 applies in relation to the CGT asset; and

  (b)   as a result of paragraph   294 - 125(3)(a), the trust makes a capital gain in respect of the asset (disregarding this section); and

  (c)   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)(c):

  (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.

Disregard initial capital gain

  (3)   Disregard the capital gain mentioned in paragraph   (1)(b).

Recognition of deferred notional gain

  (4)   The deferred notional gain is the 2016 - 17 non - exempt proportion of the amount of the trust's net capital gain for the 2016 - 17 income year determined on the assumptions that:

  (a)   subsection   (3) of this section does not apply; and

  (b)   the trust made no capital gains in that income year other than the gain mentioned in paragraph   (1)(b); and

  (c)   the trust made no capital losses in that income year; and

  (d)   the trust had no previously unapplied net capital losses from earlier income years.

  (5)   For the purposes of Division   102 of the Income Tax Assessment Act 1997 , if a realisation event happens to the asset in an income year that starts on or after 1   July 2017:

  (a)   treat the trust as having made a capital gain in that income year equal to the deferred notional gain; and

  (b)   disregard section   102 - 20 of that Act in respect of that capital gain; and

  (c)   treat that capital gain as not being a discount capital gain.

  (6)   Section   295 - 400 of the Income Tax Assessment Act 1997 does not apply to the amount by which a net capital gain is increased (or comes into existence) as a result of subsection   (5).

  (7)   In this section:

"2016-17 non-exempt proportion" means:

  (a)   unless paragraph   (b) applies--1 minus the proportion mentioned in subsection   295 - 400(1) of the Income Tax Assessment Act 1997 ; or

  (b)   if the trustee has made a choice under subsection   295 - 400(3) of that Act--the percentage worked out by subtracting the percentage mentioned in subsection   295 - 400(4) of that Act in respect of the trust for the 2016 - 17 income year from 100%.

"deferred notional gain" has the meaning given by subsection   (4).

Table of Subdivisions

295 - B   Modifications of the Income Tax Assessment Act 1997 for 30   June 1988 assets

295 - C   Notices relating to contributions

295 - F   Exempt income

295 - G   Deductions

295 - I   No - TFN contributions income

Table of sections

295 - 75   Application of Subdivision

295 - 80   Meaning of 30   June 1988 asset

295 - 85   Cost base of 30   June 1988 asset

295 - 90   Market value of stock exchange listed assets

295 - 95   Adjustment of cost base as at 30   June 1988--return of capital

295 - 100   Exercise of rights