Document ID: chunk:federal_register_of_legislation:C2020C00244:clause:2_1:p8
Version: federal_register_of_legislation:C2020C00244
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 8/11)
Character Range: 50762–53807

with which a *complying superannuation/FHSA life insurance policy is held by a continuing fund for the losses choice just after the completion time.
 (5) For the purposes of subsection (2), ignore any *CGT assets retained by the transferring entity:
 (a) to pay its existing or expected debts relating to the *arrangement; or
 (b) to meet its liabilities relating to individuals who have remained members (within the meaning of the Superannuation Industry (Supervision) Act 1993) of the original fund because of circumstances beyond the control of the trustee of that fund.

310‑50  Choosing the form of the assets roll‑over
 (1) For those of the original assets that are not *revenue assets, the form of the roll‑over is worked out as follows:

      Method statement
           Step 1. For the transfer events relating to those original assets:

                (a) add up any *capital losses of the transferring entity for the events; and
                (b) subtract any *capital gains of the transferring entity for the events.

           Step 2. If the result of step 1 is more than zero, the entity choosing the roll‑over can choose either section 310‑55 (global asset approach) or 310‑60 (individual asset approach) to apply to those assets and the corresponding received assets.
           Step 3. Otherwise, section 310‑60 (individual asset approach) applies to those original assets and the corresponding received assets.
 (2) For those of the original assets that are *revenue assets, the form of the roll‑over is worked out as follows:

      Method statement
           Step 1. For the transfer events relating to those original assets:

                (a) add up any amounts the transferring entity would be able to deduct as a result of the events; and
                (b) subtract any amounts that would be included in the transferring entity's assessable income as a result of the events.

           Step 2. If the result of step 1 is more than zero, the entity choosing the roll‑over can choose either section 310‑65 (global asset approach) or 310‑70 (individual asset approach) to apply to those assets and the corresponding received assets.
           Step 3. Otherwise, section 310‑70 (individual asset approach) applies to those original assets and the corresponding received assets.

Subdivision 310‑E—Consequences of choosing assets roll‑over

Table of sections
310‑55 CGT assets—if global asset approach chosen
310‑60 CGT assets—individual asset approach
310‑65 Revenue assets—if global asset approach chosen
310‑70 Revenue assets—individual asset approach
310‑75 Further consequences for roll‑overs involving life insurance companies

310‑55  CGT assets—if global asset approach chosen

Consequences for transferring entity
 (1) For each of the original assets to which this section applies, the transferring entity's *capital proceeds from the relevant transfer event are taken to be an amount equal to:
 (a) if, apart from this subsection, the event would result in a *capital gain—the asset's *cost base just