Private ruling: CGT - marriage breakdown rollover
Date of advice: 21 March 2023
Published: 8 May 2023
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the marriage breakdown rollover provisions under Subdivision 126-A of the Income Tax Assessment Act 1997 apply to the property transferred to you by your ex-spouse? | A1: Yes. You have received the property in compliance with a court order made under the Family Law Act 1975. Therefore, as the conditions for the marriage breakdown rollover under section 126-5 of the ITAA 1997 have been met, in accordance with the principles contained in Taxation Determination 1999/60 the rollover will automatically apply. As a result, in relation to your tax affairs, any capital gain or capital loss made from receiving the property in accordance with the Court Order is deferred until you dispose of the property.

Relevant facts and circumstances: You and your ex-spouse purchased a property. You are the Respondent, and your ex-spouse is the Applicant. In a Court Order you and your ex-spouse were ordered by the Family Court of Australia to do the following:

Relevant legislative provisions: Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 126-5


That within 30 days from the date of these orders, the Respondent do all such acts and things and sign all necessary documents to transfer their interest in the property ("the property") as to a XX share to the Applicant and a XX share to the Second Respondent and the Third Respondent jointly. | Pay the respondent the sum of money; and | Assume all liability for and indemnify the Respondent against all outgoings in respect of the property (jointly and severally with the Second Respondent and Third Respondent). | Pay the Respondent the total sum of $XXX,000; and | Assume all liability for and indemnify the Respondent against all outgoings in respect of the property (jointly and severally with the Applicant).