Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p11
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 11/59)
Character Range: 2560303–2562988

applies, the original interest holder informs the replacement entity in writing of the *cost base of its original interest worked out just before a CGT event happened in relation to it; and
 (f) if an acquiring entity is a member of a wholly‑owned group—no member of the group issues equity (other than a replacement interest), or owes new debt, under the arrangement:
 (i) to an entity that is not a member of the group; and
 (ii) in relation to the issuing of the replacement interest.
Note: If the original interest holder also exchanges a CGT asset that it acquired before 20 September 1985, the cost base of any interest received in exchange for it is worked out under section 124‑800.

Further roll‑over conditions in certain cases
 (4) The conditions specified in subsection (5) must be satisfied if the original interest holder and an acquiring entity did not deal with each other at *arm's length and:
 (a) neither the original entity nor the replacement entity had at least 300 *members just before the *arrangement started; or
 (b) the original interest holder, the original entity and an acquiring entity were all members of the same *linked group just before that time.
Note: There are some cases where a company will not be regarded as having 300 members: see section 124‑810.
 (5) The conditions are:
 (a) the *market value of the original interest holder's *capital proceeds for the exchange is at least substantially the same as the market value of its original interest; and
 (b) its replacement interest carries the same kind of rights and obligations as those attached to its original interest.

CUFS
 (6) This section applies to the holder of a Chess Unit of Foreign Security as if the holder held the underlying interests that the unit represents.
Note: A Chess Unit of Foreign Security is an interest, traded on the stock market operated by ASX Limited, in a foreign share, unit or interest.
 (7) A company is the ultimate holding company of a *wholly‑owned group if it is not a *100% subsidiary of another company in the group.

124‑781  Replacement of trust interests
 (1) There is a roll‑over if:
 (a) an entity (also the original interest holder) exchanges:
 (i) a unit or other interest (also the holder's original interest) in a trust (also the original entity) for a unit or other interest (also the holder's replacement interest) in another trust (also the acquiring entity and the replacement entity); or
 (ii) an option, right or similar interest (also the holder's original interest) issued by the original entity that gives the holder an entitlement to acquire a unit or other interest in the original entity for a similar interest (also the holder's