Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p12
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 12/59)
Character Range: 2562746–2565464

an option, right or similar interest (also the holder's original interest) issued by the original entity that gives the holder an entitlement to acquire a unit or other interest in the original entity for a similar interest (also the holder's replacement interest) in another trust (also the acquiring entity and the replacement entity); and
 (b) entities have *fixed entitlements to all of the income and capital of the original entity and the acquiring entity; and
 (c) the exchange is in consequence of an *arrangement that satisfies subsection (2) or (2A); and
 (d) the conditions in subsections (3) and (4) are satisfied.
Note 1: There are some exceptions: see section 124‑795.
Note 2: The original interest holder can obtain only a partial roll‑over if the capital proceeds for its original interest include something other than its replacement interest: see section 124‑790.

Conditions for arrangement
 (2) The *arrangement must:
 (a) result in the acquiring entity owning 80% or more of the *trust voting interests in the original entity or, if there are none, 80% or more of the units or other interests in the original entity; and
 (b) be one in which at least all owners of trust voting interests (or of units or other interests) in the original entity (except the acquiring entity) could participate; and
 (c) be one in which participation was available on substantially the same terms for all of the owners of interests or units of a particular type in the original entity.

Conditions for arrangement—takeover bids
 (2A) The *arrangement must:
 (a) satisfy paragraph (2)(a); and
 (b) be, be part of, or include a takeover bid (within the meaning of the Corporations Act 2001) for the original interests by the acquiring entity that is not carried out in contravention of the provisions mentioned in paragraphs 612(a) to (g) of that Act.
Note: For exemption and modification of provisions by ASIC (and review by the takeovers panel) see Part 6.10 of the Corporations Act 2001. For Court declarations excusing contraventions see section 1325D of that Act.

Conditions for roll‑over
 (3) The conditions are:
 (a) the original interest holder *acquired its original interest on or after 20 September 1985; and
 (b) apart from the roll‑over, it would make a *capital gain from a *CGT event happening in relation to its original interest; and
 (c) it chooses to obtain the roll‑over or, if section 124‑782 applies to it for the *arrangement, it and the trustee of the acquiring entity jointly choose to obtain the roll‑over; and
 (d) if that section applies to it, it informs that trustee in writing of the *cost base of its original interest as at the time just before a CGT event happened in relation to it.