Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p57
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 57/59)
Character Range: 2673621–2676186

under a corresponding *foreign law; or
 (d) something done under:
 (i) a financial agreement made under Part VIIIA of the Family Law Act 1975 that is binding because of section 90G of that Act; or
 (ii) a corresponding written agreement that is binding because of a corresponding foreign law; or
 (da) something done under:
 (i) a Part VIIIAB financial agreement (within the meaning of the Family Law Act 1975) that is binding because of section 90UJ of that Act; or
 (ii) a corresponding written agreement that is binding because of a corresponding foreign law; or
 (e) something done under:
 (i) an award made in an arbitration referred to in section 13H of the Family Law Act 1975; or
 (ii) a corresponding award made in an arbitration under a corresponding State law, Territory law or foreign law; or
 (f) something done under a written agreement:
 (i) that is binding because of a State law, Territory law or foreign law relating to breakdowns of relationships between spouses; and
 (ii) that, because of such a law, prevents a court making an order about matters to which the agreement applies, or that is inconsistent with the terms of the agreement in relation to those matters, unless the agreement is varied or set aside.
 (2) Only these *CGT events are relevant:
 (a) CGT events A1 and B1 (a disposal case); and
 (b) CGT events D1, D2, D3 and F1 (a creation case).
Note: The full list of CGT events is in section 104‑5.
 (3) However, there is no roll‑over if:
 (a) the *CGT asset involved is *trading stock of the transferor; or
 (b) for *CGT event B1—title in the CGT asset does not pass to the transferee at or before the end of the agreement.
 (3A) There is no roll‑over because of paragraph (1)(d), (da) or (f) unless the conditions set out in section 126‑25 are met.
 (4) A *capital gain or a *capital loss the transferor makes from the *CGT event is disregarded.

Consequences for the transferee (disposal case)
 (5) For a disposal case where 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.
Example: Your spouse transfers land to you because of a court order under the Family Law Act 1975. Any capital gain or loss your spouse makes is disregarded.
 If the land's cost base at the time you acquired it is $10,000, the first element