Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 4/6)
Character Range: 2788916–2791579

to the extent that it relates to terminating a *granny flat interest in a *dwelling under an *arrangement by terminating the arrangement, if:
 (a) section 137‑15 applied so that a CGT event did not happen when the arrangement was entered into; or
 (b) section 137‑20 applied so that a CGT event did not happen when the arrangement was varied.

Division 149—When an asset stops being a pre‑CGT asset

Table of Subdivisions
149‑A Key concepts
149‑B When asset of non‑public entity stops being a pre‑CGT asset
149‑C When asset of public entity stops being a pre‑CGT asset
149‑F How to treat a "demutualised" public entity

Subdivision 149‑A—Key concepts

Table of sections
149‑10 What is a pre‑CGT asset?
149‑15 Majority underlying interests in a CGT asset

149‑10  What is a pre‑CGT asset?
  A *CGT asset that an entity owns is a pre‑CGT asset if, and only if:
 (a) the entity last acquired the asset before 20 September 1985; and
 (b) the entity was not, immediately before the start of the 1998‑99 income year, taken under:
 (i) former subsection 160ZZS(1) of the Income Tax Assessment Act 1936; or
 (ii) Subdivision C of Division 20 of former Part IIIA of that Act;
  to have acquired the asset on or after 20 September 1985; and
 (c) the asset has not stopped being a pre‑CGT asset of the entity because of this Division.
Note: There are transitional rules for assets that stopped being pre‑CGT assets under the Income Tax Assessment Act 1936: see section 149‑5 of the Income Tax (Transitional Provisions) Act 1997.

149‑15  Majority underlying interests in a CGT asset
 (1) Majority underlying interests in a *CGT asset consist of:
 (a) more than 50% of the beneficial interests that *ultimate owners have (whether directly or *indirectly) in the asset; and
 (b) more than 50% of the beneficial interests that ultimate owners have (whether directly or indirectly) in any *ordinary income that may be *derived from the asset.
 (2) An underlying interest in a *CGT asset is a beneficial interest that an *ultimate owner has (whether directly or *indirectly) in the asset or in any *ordinary income that may be *derived from the asset.
 (3) An ultimate owner is:
 (a) an individual; or
 (b) a company whose *constitution prevents it from making any distribution, whether in money, property or otherwise, to its members; or
 (c) the Commonwealth, a State or a Territory; or
 (d) a municipal corporation; or
 (e) a *local governing body; or
 (f) the government of a foreign country, or of part of a foreign country.
 (4) An *ultimate owner indirectly has a beneficial interest in a *CGT asset of another entity (that is not an ultimate owner) if he, she or it would