Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 104.198

  (1)   CGT event J6 happens if you choose a small business roll - over under Subdivision   152 - E for a * CGT event that happens in relation to a * CGT asset in an income year and:

  (a)   by the end of the * replacement asset period, you have done either or both of the following:

  (i)   * acquired a replacement asset (the replacement asset );

  (ii)   incurred * fourth element expenditure in relation to a CGT asset (also the replacement asset ); and

  (b)   at the end of the replacement asset period, the replacement asset is your * active asset; and

  (c)   if the replacement asset is a * share in a company or an interest in a trust, at the end of the replacement asset period:

  (i)   you, or an entity * connected with you, are a * CGT concession stakeholder in the company or trust; or

  (ii)   CGT concession stakeholders in the company or trust have a * small business participation percentage in you of at least 90%; and

  (d)   the total (the amount incurred ) of the following, in relation to each replacement asset that satisfied paragraph   (b) and, if applicable, paragraph   (c), is less than the amount of the capital gain that you disregarded:

  (i)   the first element of the * cost base;

  (ii)   the * incidental costs you incurred (which can include giving property, see section   103 - 5);

  (iii)   the amount of fourth element expenditure incurred.

Note:   You do not have to satisfy the basic conditions in Subdivision   152 - A for the gain in relation to CGT event J6 (see subsection   152 - 305(4)).

  (2)   The time of the event is at the end of the * replacement asset period.

  (3)   You make a capital gain equal to the difference between:

  (a)   the amount of the * capital gain that you disregarded under Subdivision   152 - E; and

  (b)   the amount incurred.

  (4)   The * replacement asset period may be modified or extended as mentioned in section   104 - 190.

Table of sections

104 - 205   Incoming international transfer of emissions unit: CGT event K1

104 - 210   Bankrupt pays amount in relation to debt: CGT event K2

104 - 215   Asset passing to tax - advantaged entity: CGT event K3

104 - 220   CGT asset starts being trading stock: CGT event K4

104 - 225   Special collectable losses: CGT event K5

104 - 230   Pre - CGT shares or trust interest: CGT event K6

104 - 235   Balancing adjustment events for depreciating assets and certain assets used for R&D: CGT event K7

104 - 240   Working out capital gain or loss for CGT event K7: general case

104 - 245   Working out capital gain or loss for CGT event K7: pooled assets

104 - 250   Direct value shifts: CGT event K8

104 - 255   Carried interests: CGT event K9

104 - 260   Certain short - term forex realisation gains: CGT event K10

104 - 265   Certain short - term forex realisation losses: CGT event K11

104 - 270   Foreign hybrids: CGT event K12