Document ID: chunk:federal_register_of_legislation:C2014C00710:clause:2_15
Version: federal_register_of_legislation:C2014C00710
Segment Type: clause
Provision Reference: sch 2 cl 15
Character Range: 35814–38511

15  Subdivision 124‑I
Repeal the Subdivision, substitute:

Subdivision 124‑I—Change of incorporation

Guide to Subdivision 124‑I

124‑510  What this Subdivision is about
      Roll‑over relief is available for members of a body that is incorporated under one law and is converted to, or replaced with, a body incorporated under another law.

Table of sections

Object of this Subdivision
124‑515 Object of this Subdivision

Change of incorporation without change of entity
124‑520 Change of incorporation without change of entity

Old corporation wound up
124‑525 Old corporation wound up

Special consequences of some roll‑overs
124‑530 Shares in company replacing pre‑CGT and post‑CGT mix of interest and rights in body
124‑535 Rights as member of Indigenous corporation replacing pre‑CGT and post‑CGT mix of interest and rights in body

Object of this Subdivision

124‑515  Object of this Subdivision
  The object of this Subdivision is to ensure that CGT considerations for *members of a body incorporated under a law do not impede a change of incorporation involving converting the body to, or replacing it with, a company incorporated under:
 (a) the Corporations Act 2001 or a similar *foreign law; or
 (b) the Corporations (Aboriginal and Torres Strait Islander) Act 2006.
Note: Subdivision 620‑A provides a roll‑over for the assets of the body.

Change of incorporation without change of entity

124‑520  Change of incorporation without change of entity
 (1) This section applies if:
 (a) you are a *member of a body incorporated under a law described in column 1 of an item of the table; and
 (b) the body is converted into a company incorporated under a law described in column 2 of the item, without creating a new legal entity; and
 (c) it is reasonable to conclude that there is no significant difference:
 (i) between the ownership of the body, and of rights relating to the body held by entities that owned the body, just before the conversion and the ownership of the company just after the conversion; or
 (ii) between the mix of ownership of the body, and of rights relating to the body held by entities that owned the body, just before the conversion and the mix of ownership of the company just after the conversion.
Note: See section 124‑20 if an entity uses a share or interest sale facility.

Laws the body and company are incorporated under
                                                  Column 1                                                                                     Column 2
                                                  Body incorporated under this law                                                             Company incorporated under this law