Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 1/18)
Character Range: 2687816–2690959

2                        A foreign resident                                                 An Australian resident but not a *prescribed dual resident       Either:
                                                                                                                                                             (a) just before the trigger event, for a disposal case; or
                                                                                                                                                             (b) just after that event, for a creation case

 (6) If the originating company or the recipient company is an Australian resident at the time of the trigger event, that company must:
 (a) be a *member of a *consolidated group or *MEC group at that time; or
 (b) not be a member of a *consolidatable group at that time.
 (7) If the originating company is a foreign resident, it must not have *acquired the *CGT asset described in subsection (8) because of:
 (a) a single *CGT event giving rise to a roll‑over under a previous application of this Subdivision (as amended by the New Business Tax System (Consolidation) Act (No. 1) 2002) involving an Australian resident originating company other than the company that is the recipient company for the current application of this Subdivision; or
 (b) a series (whether or not it is the longest possible series) of consecutive CGT events giving rise to roll‑overs under previous applications of this Subdivision (as amended by the New Business Tax System (Consolidation) Act (No. 1) 2002), the earliest involving an Australian resident originating company other than the company that is the recipient company for the current application of this Subdivision.
 (8) Subsection (7) operates in relation to the *CGT asset:
 (a) that was involved in the trigger event in a disposal case; or
 (b) because of which the originating company was able to create the CGT asset that was involved in the trigger event in a creation case.
 (9) Subsection (7) does not apply if each of the following companies mentioned in that subsection:
 (a) the recipient company for the roll‑over under the current application of this Subdivision;
 (b) the Australian resident originating company for the roll‑over under:
 (i) for paragraph (7)(a)—the previous application of this Subdivision; or
 (ii) for paragraph (7)(b)—the earliest previous application of this Subdivision for that series of consecutive *CGT events;
was, at the time of its roll‑over, the *head company of the same *MEC group.

126‑55  When there is a roll‑over

Capital gain or no loss
 (1) There is a roll‑over if:
 (a) either:
 (i) the trigger event would have resulted in the originating company making a *capital gain, or making no *capital loss and not being entitled to a deduction; or
 (ii) the originating company *acquired the roll‑over asset before 20 September 1985; and
 (b) the originating company and recipient company both choose to obtain it.
Note: Section 103‑25 sets out when the choice must be made.

126‑60  Consequences of roll‑over

Consequences for the originating company in all cases
 (1) A