Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 112.145

    If the transferor acquired the asset on or after 20   September 1985:

  (a)   the first element of the asset's cost base (in the hands of the transferee) is replaced by the asset's cost base at the time the transferee acquired it; and

  (b)   the first element of the asset's reduced cost base (in the hands of the transferee) is replaced by the asset's reduced cost base at the time the transferee acquired it.

Note 1:   If the transferor acquired the asset before 20   September 1985, the transferee is taken to have acquired it before that day: see Subdivision   126 - A.

Note 2:   The reduced cost base may be further modified if the same asset roll - over happens after a demerger: see section   125 - 170.