Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p29
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 29/34)
Character Range: 5148148–5150933

not available if the transferor, or any transferee, is either an *exempt entity or a *complying superannuation entity.

328‑435  Genuine restructures—safe harbour rule
  For the purposes of paragraph 328‑430(1)(a) (but without limiting that paragraph), a transaction is, or is a part of, a genuine restructure of an ongoing *business if, in the 3 year period after the transaction takes effect:
 (a) there is no change in ultimate economic ownership of any of the significant assets of the business (other than *trading stock) that were transferred under the transaction; and
 (b) those significant assets continue to be *active assets; and
 (c) there is no significant or material use of those significant assets for private purposes.

328‑440  Ultimate economic ownership—discretionary trusts
  For the purposes of paragraph 328‑430(1)(c), a transaction does not have the effect of changing the ultimate economic ownership of an asset, or any individual's share of that ultimate economic ownership, if:
 (a) either or both of the following applies:
 (i) just before the transaction took effect, the asset was included in the property of a *non‑fixed trust that was a *family trust;
 (ii) just after the transaction takes effect, the asset is included in the property of a non‑fixed trust that is a family trust; and
 (b) every individual who, just before the transfer took effect, had the ultimate economic ownership of the asset was a member of the family group (within the meaning of Schedule 2F to the Income Tax Assessment Act 1936) relating to the trust or trusts referred to in paragraph (a); and
 (c) every individual who, just after the transfer takes effect, has the ultimate economic ownership of the asset is a member of that family group.

328‑445  Residency requirement
  For the purposes of paragraph 328‑430(1)(e), the residency requirement for an entity is that:
 (a) if the entity is an individual or a company—the entity is an Australian resident; or
 (b) if the entity is a trust—it is a *resident trust for CGT purposes; or
 (c) if the entity is a partnership (other than a *corporate limited partnership)—at least one of the partners is an Australian resident; or
 (d) if the entity is a corporate limited partnership—it is, under section 94T of the Income Tax Assessment Act 1936, a resident for the purposes of the *income tax law.

Consequences of a roll‑over under this Subdivision

328‑450  Small business transfers not to affect income tax positions
 (1) Except as provided by this Subdivision, a transfer of an asset has no direct consequences under the *income tax law if:
 (a) the transfer occurs under a transaction in relation to which section 328‑430 applies; and
 (b) a roll‑over under this Subdivision is available under that section in relation to