Document ID: chunk:federal_register_of_legislation:C2025C00014:section:4:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 4 (pt 1/2)
Character Range: 412986–415668

4                                                  Disposal of asset to another member of the same wholly‑owned group  There is a roll‑over under Subdivision 126‑B of the Income Tax Assessment Act 1997 for the CGT event.

No balancing charges
 (2) Subsection 73A(4) (which deals with balancing charges) does not apply to the disposal of the building or the part of the building by the transferor.

Transferee to inherit certain characteristics from transferor
 (3) Section 73A applies as if:
 (a) the transferee had acquired the building or the part of the building for a consideration equal to the cost of the building or the part of the building to the transferor; and
 (b) deductions were not allowable to the transferee under subsection 73A(2) in respect of:
 (i) so much of the cost of the building or the part of the building to the transferor as was allowed or allowable as a deduction to the transferor under that subsection in respect of the building or the part of the building; or
 (ii) if there have been 2 or more prior successive applications of this section—so much of the cost of the building or the part of the building to the transferor as was allowed or allowable as a deduction to the prior successive transferors under that subsection in respect of the building or the part of the building; and
 (c) deductions were not allowable to the transferor under subsection 73A(2) in respect of the building or the part of the building for the year of income in which the disposal took place or for a subsequent year of income.

Subsection 73A(2A)—special rules
 (4) If subsection 73A(2A) applies to the transferor and in relation to the building or the part of the building, that subsection applies in relation to the transferee and in relation to the building or the part of the building.

Disposal by transferee where no roll‑over relief—inheritance of deductions
 (5) If:
 (a) after the disposal of the building or the part of the building to the transferee, the building or the part of the building is lost or destroyed or the transferee disposes of the building or the part of the building; and
 (b) in the case of a disposal by the transferee—this section does not apply to the disposal;
then, for the purposes of the application of subsection 73A(4) in relation to the loss, destruction or disposal, the total of:
 (c) the deductions allowed or allowable to the transferor under subsection 73A(2) in relation to the building or the part of the building; and
 (d) if there have been 2 or more prior successive applications of this section—the deductions allowed or allowable to the prior successive transferors under subsection 73A(2) in relation to the building