Commonwealth Numbered Acts Commonwealth Numbered ActsPart 1 -- Extending the application of Division 310
Income Tax Assessment Act 1997
1 Section 310-1 (note 1)
Repeal the note, substitute:
Note 1: This Division applies to mergers happening between 24 December 2008 and 30 June 2011 (or, in certain cases, 30 September 2011), or between 1 October 2011 and 1 July 2017 (see Part 3 of Schedule 2 to the Tax Laws Amendment (2009 Measures No. 6) Act 2010 ).
2 Section 310-1 (note 2)
Omit "1 July 2013", substitute "1 July 2019".
Tax Laws Amendment (2009 Measures No. 6) Act 2010
3 Subsection 2(1) (table item 4)
Repeal the item, substitute:
|
4. Schedule 2, Parts 4 and 5 |
1 July 2019. |
1 July 2019 |
4 Subitem 11(1) of Schedule 2
After "30 June 2011", insert ", or during the period starting on 1 October 2011 and ending at the end of 1 July 2017".
Part 2 -- Further amendments of Division 310
Income Tax Assessment Act 1997
5 Subsection 310-10(1)
Omit " * complying superannuation fund", substitute " * complying superannuation fund (other than a * self managed superannuation fund)".
6 Subparagraphs 310-35(1)(b)(i) and (ii)
Omit "for that earlier year", substitute "for the transfer year".
7 Paragraph 310-40(1)(b)
Omit "an amount", substitute "for the purposes of section 36-15, an amount".
8 Subparagraphs 310-40(1)(b)(i) and (ii)
Omit "for that earlier year", substitute "for the income year immediately prior to the transfer year".
9 At the end of subsection 310-40(1)
Add:
; and (c) for all other purposes of this Act, an amount equal to the transferred amount is taken to be:
(i) if the receiving entity is a life insurance company--a tax loss of the complying superannuation/FHSA class incurred by the receiving entity for the transfer year; and
(ii) otherwise--a tax loss incurred by the receiving entity for the transfer year.
10 Section 310-50
Repeal the section, substitute:
310-50 Choosing the form of the assets roll-over
(1) An entity that chooses a roll-over under this Subdivision must choose the form of the roll-over that applies to each of the following:
(a) the original assets that are not * revenue assets;
(b) the original assets that are revenue assets.
(2) In respect of original assets that are not * revenue assets, the entity choosing the roll-over must choose either section 310-55 (global asset approach) or 310-60 (individual asset approach) to apply to the original assets and the corresponding received assets.
(3) In respect of original assets that are * revenue assets, the entity choosing the roll-over must choose either section 310-65 (global asset approach) or 310-70 (individual asset approach) to apply to the original assets and the corresponding received assets.
Note: The entity choosing the form of the roll-over may choose different forms of roll-over for its CGT assets and revenue assets.
11 Subsection 310-55(1) (note)
Omit "subsection 310-50(1)", substitute "subsection 310-50(2)".
12 Subsection 310-60(1)
Omit " * capital loss", substitute " * capital gain or * capital loss".
13 Subsection 310-60(1) (note)
Repeal the note, substitute:
Note: This section only applies if it is chosen to apply under subsection 310-50(2).
14 Subsection 310-60(2)
Omit " * capital loss", substitute " * capital gain or * capital loss".
15 Subsection 310-60(3)
Repeal the subsection, substitute:
(3) The transferring entity's * capital proceeds from the transfer event are taken to be an amount equal to:
(a) if, apart from this subsection, the event would result in a * capital gain--the asset's * cost base just before the event; or
(b) if, apart from this subsection, the event would result in a * capital loss--the asset's * reduced cost base just before the event.
16 Subsection 310-65(1) (note)
Omit "subsection 310-50(2)", substitute "subsection 310-50(3)".
17 Subsection 310-70(1)
Omit "incurs a * tax loss", substitute "derives assessable income (other than a * capital gain) or incurs a * tax loss".
18 Subsection 310-70(1) (note)
Repeal the note, substitute:
Note: This section only applies if it is chosen to apply under subsection 310-50(3).
Part 3 -- Application provision
19 Application provision
The amendments made by this Schedule apply in relation to a transferring entity and a receiving entity if:
(a) the condition in subsection 310-10(3), 310-15(3) or 310-20(3) of the Income Tax Assessment Act 1997 for those entities is satisfied; and
(b) all the transfer events (if any) referred to in subsection 310-45(2) of that Act for those entities happen;
during the period starting on 1 October 2011 and ending at the end of 1 July 2017.
Note 1: The effect of paragraph (a) is that all of the members of the original fund will need to become members of a continuing fund during this period.
Note 2: The effect of paragraph (b) is that the transferring fund needs to cease to hold all relevant assets during this period.