Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 17/18)
Character Range: 2727912–2730604

interest; and
 (ii) owns the roll‑over interest at the deeming time; and
 (e) under the arrangement, the investor is entitled to receive from the facility:
 (i) an amount equivalent to the *capital proceeds of any *CGT event that happens in relation to the roll‑over interest (less expenses); or
 (ii) if a CGT event happens in relation to the roll‑over interest together with CGT events happening in relation to other membership interests—an amount equivalent to the investor's proportion of the total capital proceeds of the CGT events (less expenses).
 (2) The facility is treated as not owning the roll‑over interest at the deeming time.

Division 128—Effect of death

Guide to Division 128

128‑1  What this Division is about

      This Division sets out what happens when you die and a CGT asset you owned just before dying devolves to your legal personal representative or passes to a beneficiary in your estate.
      It also contains rules about what happens when a joint tenant dies.

General rules
128‑10 Capital gain or loss when you die is disregarded
128‑15 Effect on the legal personal representative or beneficiary
128‑20 When does an asset pass to a beneficiary?
128‑25 The beneficiary is a trustee of a superannuation fund etc.

Special rules for joint tenants
128‑50 Joint tenants

General rules

128‑10  Capital gain or loss when you die is disregarded
  When you die, a *capital gain or *capital loss from a *CGT event that results for a *CGT asset you owned just before dying is disregarded.
Note 1: Section 104‑215 sets out an exception to this rule if the CGT asset passes to a beneficiary in your estate who is:
• an exempt entity; or
• the trustee of a complying superannuation entity; or
• a foreign resident.
Note 2: There is a special indexation rule for deceased estates: see section 114‑10.

128‑15  Effect on the legal personal representative or beneficiary
 (1) This section sets out what happens if a *CGT asset you owned just before dying:
 (a) devolves to your *legal personal representative; or
 (b) *passes to a beneficiary in your estate.
Note 1: Section 128‑25 has different rules if the asset passes to a beneficiary in your estate who is the trustee of a complying superannuation entity.
Note 2: If the beneficiary is an exempt entity, Division 57 in Schedule 2D to the Income Tax Assessment Act 1936 has rules about exempt entities that become taxable. It sets out what the entity is taken to have purchased its assets for when it becomes taxable.
Note 3: If the beneficiary is a foreign resident, Subdivision 855‑B sets out what happens if the beneficiary becomes an Australian resident. The beneficiary is taken to have acquired each asset owned