Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 3/3)
Character Range: 2685378–2687215

company must be members of the same *wholly‑owned group at the time of the trigger event.
Note: This requirement is taken to be satisfied in the case of the transfer of the life insurance business of a life insurance company: see section 121AS of the Income Tax Assessment Act 1936.
 (2) The *CGT asset involved (the roll‑over asset) must not be:
 (a) *trading stock of the recipient company just after the time of the trigger event; or
 (b) a *registered emissions unit *held by the recipient company just after the time of the trigger event.
 (3) If:
 (a) the roll‑over asset is a right or *convertible interest referred to in Division 130, or an option referred to in Division 134, or an *exchangeable interest; and
 (b) the recipient company *acquires another *CGT asset by exercising the right or option or by converting the convertible interest or in exchange for the disposal or redemption of the exchangeable interest;
the other asset cannot become *trading stock of the recipient company just after the recipient company acquired it.
 (3A) If:
 (a) the roll‑over asset is an option referred to in Division 134; and
 (b) the recipient company *acquires another *CGT asset by exercising the option;
the other asset cannot become a *registered emissions unit *held by the recipient company just after the recipient company acquired it.
 (4) The *ordinary income and *statutory income of the recipient company must not be exempt from income tax because it is an *exempt entity for the income year of the trigger event.
 (5) The requirements in one of the items in this table must be satisfied.

Additional requirements
Item                     At the time of the trigger event the originating company must be:  At the time of the trigger event the recipient company must be:  The roll‑over asset must be taxable Australian property: