Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 1/2)
Character Range: 2449509–2452520

2                                           You *dispose of all the assets of a *business to the company                      (a) a *collectable or a *personal use asset; or
                                                                                                                              (b) a decoration awarded for valour or brave conduct (except if you paid money or gave any other property for it); or
                                                                                                                              (c) an asset that becomes *trading stock of the company just after the disposal or creation (unless it was your trading stock when you disposed of it); or
                                                                                                                              (d) an asset that becomes a *registered emissions unit *held by the company just after the *disposal or creation (unless it was a registered emissions unit held by you when you disposed of it)

 (3) A precluded asset is:
 (a) a *depreciating asset; or
 (b) *trading stock; or
 (c) an interest in the copyright in a *film referred to in section 118‑30; or
 (d) a *registered emissions unit.
 (4) If:
 (a) the *CGT asset or any of the assets of the *business is a right, option, *convertible interest or *exchangeable interest; and
 (b) the company *acquires another CGT asset by exercising the right or option or by converting the convertible interest or in exchange for the disposal or redemption of the exchangeable interest;
the other asset cannot become *trading stock of the company just after the company acquired it.
 (5) The *ordinary income and *statutory income of the company must not be exempt from income tax because it is an *exempt entity for the income year of the trigger event.
 (6) If you are an individual at the time of the trigger event, either:
 (a) you and the company must both be Australian residents at that time; or
 (b) both of the following requirements must be satisfied:
 (i) each asset must be *taxable Australian property at that time;
 (ii) the shares in the company mentioned in subsection 122‑20(1) must be taxable Australian property just after that time.
 (7) If you are a trustee of a trust at the time of the trigger event, either:
 (a) at that time, the trust must be a *resident trust for CGT purposes and the company must be an Australian resident; or
 (b) both of the following requirements must be satisfied:
 (i) each *CGT asset must be a CGT asset of the trust that is *taxable Australian property at that time; and
 (ii) the shares in the company mentioned in subsection 122‑20(1) must be taxable Australian property just after that time.

122‑35  What if the company undertakes to discharge a liability (disposal case)

Disposal of a CGT asset
 (1) One of the requirements in this table must be satisfied if:
 (a) you *dispose of a *CGT asset; and
 (b) the company undertakes to discharge one or more liabilities in respect of it.
  (The