Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 8/13)
Character Range: 2492323–2494857

Note 4: There are special indexation rules for roll‑overs: see Division 114.
Note 5: The reduced cost base may be modified for a roll‑over happening after a demerger: see section 125‑170.
 (4) If you *acquired the original asset before 20 September 1985, you are taken to have acquired each new asset before that day.
Note: A capital gain or loss you make from a CGT asset you acquired before 20 September 1985 is generally disregarded: see Division 104. This exemption is removed in some situations: see Division 149.
 (5) However, subsection (4) is taken never to have applied to a *share to which subsection 104‑195(6) applies (CGT event J4).

124‑15  Your ownership of more than one CGT asset ends
 (1) There are these consequences (in most cases) if you can obtain a roll‑over when your ownership of more than one *CGT asset (the original assets) ends and you acquire one or more CGT assets (the new assets) in a situation covered by this Division.
Example: You own 100 shares in a company. The company cancels these shares and issues you with 10 shares in return.
 (1A) A *car, motor cycle or similar vehicle must not be one of the new assets.
 (2) A *capital gain or a *capital loss you make from each original asset is disregarded.
 (3) If you *acquired all the original assets on or after 20 September 1985, the first element of each new asset's cost base is:
The first element of each new asset's *reduced cost base is worked out similarly.
Note 1: No other elements of the cost base of the new asset are affected by the roll‑over.
Note 2: There are special indexation rules for roll‑overs: see Division 114.
 (4) If you *acquired all the original assets before 20 September 1985, you are taken to have acquired each new asset before that day.
Note: A capital gain or loss you make from a CGT asset you acquired before 20 September 1985 is generally disregarded: see Division 104. This exemption is removed in some situations: see Division 149.
 (5) If you *acquired some of the original assets before 20 September 1985, you are taken to have acquired a number of new assets before that day. It is the maximum possible that does not exceed:
If the result is less than one, none of the new assets are taken to have been *acquired before 20 September 1985.
Example: To continue the example, suppose you acquired 67 of the 100 original shares before 20 September 1985. The number of new shares that you are taken to have acquired before that day cannot exceed:
 So, you are taken to have acquired 6 of the 10 shares before that