Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 328.430

  (1)   A roll - over under this Subdivision is available in relation to an asset that, under a transaction, an entity (the transferor ) transfers to one or more other entities ( transferees ) if:

  (a)   the transaction is, or is a part of, a genuine restructure of an ongoing * business; and

  (b)   each party to the transfer is an entity to which any one or more of the following applies:

  (i)   it is a * small business entity for the income year during which the transfer occurred;

  (ii)   it has an * affiliate that is a small business entity for that income year;

  (iii)   it is * connected with an entity that is a small business entity for that income year;

  (iv)   it is a partner in a partnership that is a small business entity for that income year; and

  (c)   the transaction does not have the effect of materially changing:

  (i)   which individual has, or which individuals have, the ultimate economic ownership of the asset; and

  (ii)   if there is more than one such individual--each such individual's share of that ultimate economic ownership; and

  (d)   the asset is a * CGT asset (other than a * depreciating asset) that is, at the time the transfer takes effect:

  (i)   if subparagraph   (b)(i) applies--an * active asset; or

  (ii)   if subparagraph   (b)(ii) or (iii) applies--an active asset in relation to which subsection   152 - 10(1A) is satisfied in that income year, or would be satisfied in that income year if paragraph   152 - 10(1AA)(b) were disregarded; or

  (iii)   if subparagraph   (b)(iv) applies--an active asset and an interest in an asset of the partnership referred to in that subparagraph; and

  (e)   the transferor and each transferee meet the residency requirement in section   328 - 445 for an entity; and

  (f)   the transferor and each transferee choose to apply a roll - over under this Subdivision in relation to the assets transferred under the transaction.

Note:   The roll - over of a depreciating asset transferred in the restructuring of a small business is addressed in item   8 of the table in subsection   40 - 340(1).

  (2)   However, a roll - over under this Subdivision is not available if the transferor, or any transferee, is either an * exempt entity or a * complying superannuation entity.