Add:

Add:

There is a roll-over for the transfer of assets of a superannuation fund to one or more other superannuation funds that is made between 30 June 2004 and 1 July 2006 because the trustee of the first fund will not be licensed by 1 July 2006 and the other funds have or will have licensed trustees.

Table of sections

Operative provisions

126-205 Object of this Subdivision
126-210 When there is a roll-over and what its effects are

The object of this Subdivision is to encourage compliance with the requirements of the Superannuation Industry (Supervision) Act 1993 for the licensing of trustees of registrable superannuation entities.

When there is a roll-over

(1)

There is a roll-over if:

(a) after 30 June 2004 and before 1 July 2006, one or more ^* CGT events happen because the trustee (the first RSE trustee ) of a registrable superannuation entity, as defined in section 10 of the Superannuation Industry (Supervision) Act 1993 , ceases to hold all its ^* CGT assets; and
(b) because of the cessation, CGT assets (the identical assets ) that, together, are identical to all the first RSE trustee's CGT assets just before the CGT events start to be held after 30 June 2004 and before 1 July 2006 by:
(i) the trustee (the successor RSE trustee ) of another such registrable superannuation entity; or
(ii) the trustees (each of whom is a successor RSE trustee ) of 2 or more other such registrable superannuation entities;
(whether or not all the identical assets were the first RSE trustee's assets just before the CGT events); and
(c) the cessation and starting occur because:
(i) it is reasonable to assume that the first RSE trustee will not have an RSE licence under Part 2A of that Act by 1 July 2006; and
(ii) each successor RSE trustee has such an RSE licence, or it is reasonable to assume that each successor RSE trustee will have such an RSE licence by 1 July 2006.

Note: Under section 10 of the Superannuation Industry

(Supervision)

Act 1993 , registrable superannuation entity is defined as covering certain kinds of superannuation funds, approved deposit funds and pooled superannuation trusts.

Effects of the roll-over

(2)

A ^* capital gain or ^* capital loss the first RSE trustee makes from each of the ^* CGT events is disregarded.

(3)

For a successor RSE trustee, the first element of the ^* cost base of each of the identical assets the successor RSE trustee holds is the cost base of the corresponding asset for the first RSE trustee at the time of the relevant ^* CGT event.

(4)

For a successor RSE trustee, the first element of the ^* reduced cost base of each of the identical assets the successor RSE trustee holds is the reduced cost base of the corresponding asset for the first RSE trustee at the time of the relevant ^* CGT event.

Example: There is a roll-over if the first RSE trustee had a block of land and 10,000 units in a unit trust and the following events happen on 30 June 2006 because the first RSE trustee does not have an RSE licence but each of the 2 successor RSE trustees (successor RSE trustee A and successor RSE trustee B) does:

(a) the first RSE trustee transfers the block to successor RSE trustee A;
(b) the first RSE trustee's units in the unit trust are cancelled at the first RSE trustee's request;
(c) 10,000 identical units in the unit trust are issued to successor RSE trustee B because of the cancellation.

The first RSE trustee disregards any capital gain or capital loss from the transfer of the block or the cancellation of the units.

The first element of successor RSE trustee A's cost base and reduced cost base for the block is the same as the first RSE trustee's cost base and reduced cost base respectively for the block at the time of the transfer.

The first element of successor RSE trustee B's cost base and reduced cost base for the units issued to successor RSE trustee B is the same as the first RSE trustee's cost base and reduced cost base respectively for its units at the time they were cancelled.

(5)

A successor RSE trustee that starts to hold one of the identical assets because of the cessation is taken to have ^* acquired the asset before 20 September 1985 if the first RSE trustee acquired the corresponding asset before that day.

Note 1: A capital gain or loss you make from a CGT asset you acquired before 20 September 1985 is generally disregarded: see Division 104. This exemption is removed in some situations: see Division 149.

Note 2: Subsection (5) cannot apply if the first RSE trustee was the trustee of a complying superannuation fund, complying approved deposit fund or pooled superannuation trust. This is because section 306 of the Income Tax Assessment Act 1936 treats such a trustee as having acquired on 30 June 1988 any assets it owned on that day.

No roll-over if successor RSE trustee not licensed

(6)

A roll-over under this section is taken never to have happened if each successor RSE trustee does not have an RSE licence under Part 2A of the Superannuation Industry (Supervision) Act 1993 by 1 July 2006.