Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p1
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 1/31)
Character Range: 609928–612765

3                                                          After 30 June 2001       First element of the cost of the asset  Subsection 58‑70(5)

Note 1: As originally enacted, Division 58 of the Income Tax Assessment Act 1997 applied to acquisitions on or after 4 August 1997. That Act was later amended to replace Division 58, with the replacement Division 58 applying to acquisitions on or after 1 July 2001.
Note 2: Division 58 of the Income Tax Assessment Act 1997 may, for example, have indirectly affected how much the chosen transitional entity could deduct for the asset because:
(a) that Division affected the amount that could be deducted by an entity that held the asset before the chosen transitional entity; and
(b) that effect extended to the chosen transitional entity because of roll‑over relief.

Division 701A—Modified application of provisions of Income Tax Assessment Act 1997 for entities with continuing majority ownership from 27 June 2002 until joining a consolidated group

Table of sections
701A‑1 Continuing majority‑owned entity, designated group etc.
701A‑5 Modified application of Part 3‑90 of Income Tax Assessment Act 1997 to trading stock of continuing majority‑owned entity
701A‑7 Modified application of Part 3‑90 of Income Tax Assessment Act 1997 to registered emissions units of continuing majority‑owned entity
701A‑10 Modified application of Part 3‑90 of Income Tax Assessment Act 1997 to certain internally generated assets of continuing majority‑owned entity

701A‑1  Continuing majority‑owned entity, designated group etc.

Continuing majority‑owned entity and designated group
 (1) If:
 (a) an entity becomes a subsidiary member of a consolidated group at any time on or after 1 July 2002; and
 (b) a person or persons continued to be the majority owners (see subsection (2)) of the entity from the start of 27 June 2002 until the entity became a subsidiary member of the group;
the entity is a continuing majority‑owned entity and the group is the entity's designated group.

Majority owners of an entity
 (2) A person or persons are the majority owners of an entity if they beneficially own, directly or indirectly through one or more interposed entities, membership interests in the entity whose market value is more than 50% of the market value of all of the membership interests in the entity.

Interposed non‑fixed trust to be treated as fixed trust
 (3) For the purposes of subsection (2), if the interposed entity or any of the interposed entities is a trust that is not a fixed trust:
 (a) it is treated as if it were a fixed trust; and
 (b) all of its objects are treated as if they were beneficiaries of that trust with equal interests in it.

701A‑5  Modified application of Part 3‑90 of Income Tax Assessment Act 1997 to trading stock of continuing majority‑owned entity
 (1) The