Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If, in consequence of the * arrangement, you exchange an interest that you * acquired before 20 September 1985 for an interest in the replacement entity, the first element of the * cost base and * reduced cost base of the interest in the replacement entity is its * market value just after you acquired it.
(2) The * cost base and * reduced cost base of the interest in the replacement entity is reduced if all or part of a * capital gain from * CGT event K6 happening is disregarded because of subsection 104 - 230(10). The amount of the reduction is the amount of the * capital gain you disregard under that subsection.
Note 1: The full list of CGT events is in section 104 - 5.
Note 2: Subsection 104 - 230(10) provides that a capital gain from CGT event K6 is disregarded to the extent that you could have chosen a roll - over under this Subdivision if your original interest had been post - CGT.