Document ID: chunk:federal_register_of_legislation:C2004C01250:clause:1_19
Version: federal_register_of_legislation:C2004C01250
Segment Type: clause
Provision Reference: sch 1 cl 19
Character Range: 16375–18862

19  At the end of Division 126 of Part 3‑3
Add:

Subdivision 126‑D—Small superannuation funds

Table of sections

126‑140 CGT event involving small superannuation funds

126‑140  CGT event involving small superannuation funds

Payment splits under Family Law Act

 (1) There is a roll‑over if:
 (a) an interest in a *small superannuation fund is subject to a *payment split; and
 (b) the *non‑member spouse in relation to that interest serves a waiver notice under section 90MZA of the Family Law Act 1975 in respect of that interest; and
 (c) as a result of serving the notice, the trustee (the transferor) of the fund transfers a *CGT asset to the trustee (the transferee) of another small superannuation fund for the benefit of the non‑member spouse.

Note: CGT event E2 may apply to the transfer.

Payment splits under the Superannuation Industry (Supervision) Regulations

 (2) There is also a roll‑over if:
 (a) an interest in a *small superannuation fund (the first fund) is subject to a *payment split; and
 (b) as a result of the payment split, there is a transfer or roll over of benefits, for the benefit of the *non‑member spouse, from the first fund to another small superannuation fund; and
 (c) the transfer is under provisions of the Superannuation Industry (Supervision) Regulations 1994 dealing with superannuation interests that are subject to payment splits; and
 (d) in order to give effect to the payment split, the trustee (the transferor) of the first fund transfers a *CGT asset to the trustee (the transferee) of the other fund for the benefit of the non‑member spouse.

Note: CGT event E2 may apply to the transfer.

Roll‑over consequences

 (3) A *capital gain or *capital loss the transferor makes from the transfer of the asset is disregarded.

 (4) If the transferor *acquired the asset on or after 20 September 1985:
 (a) the first element of the asset's *cost base (in the hands of the transferee) is the asset's cost base (in the hands of the transferor) at the time the transferee acquired it; and
 (b) the first element of the asset's *reduced cost base (in the hands of the transferee) is worked out similarly.

 (5) If the transferor *acquired the asset before 20 September 1985, the transferee is taken to have acquired it before that day.

Note: 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.