Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2
Character Range: 2470771–2473717

2                                           The partners *dispose of their interests in all the assets of a business                            (a) a *collectable or a *personal use asset; or
                                                                                                                                                (b) a decoration awarded for valour or brave conduct (except if a partner paid money or gave any other property for it); or
                                                                                                                                                (c) an asset that becomes *trading stock of the company just after the disposal or creation (unless it was trading stock of the partnership when it was disposed of)

 (4) If:
 (a) the *CGT asset or any of the assets of the *business is a right, option, *convertible interest or *exchangeable interest; and
 (b) the 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 company just after the company acquired it.
 (5) The *ordinary income and *statutory income of the company must not be exempt from income tax because it is an *exempt entity for the income year of the trigger event.
 (6) For a partner who is not a trustee of a trust at the time of the trigger event, either:
 (a) the partner and the company must both be Australian residents at that time; or
 (b) both of the following requirements must be satisfied:
 (i) each asset must be *taxable Australian property at that time; and
 (ii) the shares in the company mentioned in subsection 122‑130(1) must be taxable Australian property just after that time.
 (7) For a partner who is a trustee of a trust at the time of the trigger event, either:
 (a) at that time, the trust must be a *resident trust for CGT purposes and the company must be an Australian resident; or
 (b) both of the following requirements must be satisfied:
 (i) each *CGT asset must be a CGT asset of the trust that is *taxable Australian property at that time; and
 (ii) the shares in the company mentioned in subsection 122‑130(1) must be taxable Australian property just after that time.

122‑140  What if the company undertakes to discharge a liability (disposal case)

Disposal of a CGT asset
 (1) One of these requirements must be satisfied (for each partner) if:
 (a) the partners *dispose of their interests in a *CGT asset; and
 (b) the company undertakes to discharge one or more liabilities in respect of the interests in the asset.
  (The *market value, or the *cost base, of an interest is worked out at the time of the disposal.)

What amount the liabilities cannot exceed
Item                                       In this situation:                                              the liabilities cannot exceed: