Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_3:p21
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 21/22)
Character Range: 413688–416420

corresponding *foreign law; or

 (c) a court order under a *State law, *Territory law or *foreign law relating to de facto marriage breakdowns.

 (2) Only these *CGT events are relevant:

 (a) CGT events A1 and B1 (a disposal case); and

 (b) CGT events D1, D2, D3 and F1 (a creation case).

Note: The full list of CGT events is in section 104‑5.

 (3) However, there is no roll‑over if:

 (a) the *CGT asset involved is *trading stock of the transferor; or

 (b) for *CGT event B1—title in the CGT asset does not pass to the transferee when the agreement ends.

 (4) A *capital gain or a *capital loss the transferor makes from the *CGT event is disregarded.

Consequences for the transferee (disposal case)

 (5) For a disposal case where the transferor *acquired the asset on or after 20 September 1985:

 (a) the first element of the asset's *cost base (in the hands of the transferee) is the asset's cost base (in the hands of the transferor) at the time the transferee acquired it; and

 (b) the first element of the asset's *reduced cost base (in the hands of the transferee) is worked out similarly.

Example: Your spouse transfers land to you because of a court order under the Family Law Act 1975. Any capital gain or loss your spouse makes is disregarded.

 If the land's cost base at the time you acquired it is $10,000, the first element of the land's cost base in your hands becomes $10,000.

Note: There are special indexation rules for roll‑overs: see Division 114.

 (6) For a disposal case where the transferor *acquired the asset before 20 September 1985, the transferee is taken to have acquired it 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.

 (7) For a disposal case where the transferor *disposed of a *collectable or *personal use asset, the transferee is taken to have *acquired one.

Note 1: Capital losses from collectables can be subtracted only from capital gains from collectables: see section 108‑10.

Note 2: Capital losses from personal use assets are disregarded: see section 108‑20.

Consequences for the transferee (creation case)

 (8) For a creation case, the first element of the asset's *cost base (in the hands of the transferee) is the amount applicable under this table. The first element of its *reduced cost base is worked out similarly.

Creation case
Event No.      Applicable amount
D1             the *incidental costs the transferor incurred that relate to the trigger event
D2             the expenditure the transferor incurred to grant the option
D3             the expenditure