Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p33
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 33/40)
Character Range: 1903317–1905793

value of any *CGT assets acquired;
if the discharge or release, or the *acquisition, was done for a purpose that included ensuring that the requirement in subsection (2) would not be satisfied in a particular situation.

Exceptions
 (9) CGT event K6 does not happen if:
 (a) for a company referred to in subsection (2)—some of its *shares were listed for quotation in the official list of a stock exchange in Australia or a foreign country at the time of the other event and at all times in the period of 5 years before the time of the other event; or
 (b) for a trust referred to in subsection (2) that is a unit trust—some of its units were so listed, or were ordinarily available to the public for subscription or purchase, at the time of the other event and at all times in that period.
 (9A) Paragraph (9)(a) applies to a case where:
 (a) the company referred to in subsection (2) is a *demerged entity; and
 (b) *shares in the demerged entity do not satisfy the test referred to in that paragraph; and
 (c) the demerger happened not more than 5 years before the other CGT event happened;
as if shares in the demerged entity were listed for quotation in the official list of a stock exchange in Australia or a foreign country at all times when some of the shares in the *head entity of the *demerger group were so listed.
Example: Louise owns shares in a company which has been listed for 3 years. The company is the head entity of a demerger group. As part of a demerger, she receives new interests in a demerged entity. The demerged entity then lists in its own right.
 Since the head entity was listed for only 3 years, the demerged entity must remain listed for 2 years before Louise's new interests become eligible for the exception from CGT event K6.
 (9B) Paragraph (9)(b) applies to a case where:
 (a) the trust referred to in subsection (2) is a *demerged entity and a unit trust; and
 (b) units in the demerged entity do not satisfy the test referred to in that paragraph; and
 (c) the demerger happened not more than 5 years before the other CGT event happened;
as if units in the demerged entity were listed for quotation in the official list of a stock exchange in Australia or a foreign country, or were ordinarily available to the public for subscription or purchase, at all times when some of the units in the *head entity of the *demerger group were so listed or available.
 (10) A *capital gain is disregarded for a *share in a company or an interest in