Document ID: chunk:federal_register_of_legislation:C2020C00244:clause:1_9:p1
Version: federal_register_of_legislation:C2020C00244
Segment Type: clause
Provision Reference: sch 1 cl 9 (pt 1/8)
Character Range: 11710–14591

9  At the end of Division 126
Add:

Subdivision 126‑G—Transfer of assets between certain trusts

Guide to Subdivision 126‑G

126‑215  What this Subdivision is about
      Roll‑overs may be available when CGT assets are transferred between certain trusts.

Table of sections

Operative provisions
126‑220 Object of this Subdivision
126‑225 When a roll‑over may be chosen
126‑230 Beneficiaries' entitlements not be discretionary etc.
126‑235 Exceptions for roll‑over
126‑240 Consequences for the trusts
126‑245 Consequences for beneficiaries—general approach for working out cost base etc.
126‑250 Consequences for beneficiaries—other approach for working out cost base etc.
126‑255 No other cost base etc. adjustment for beneficiaries
126‑260 Giving information to beneficiaries

Operative provisions

126‑220  Object of this Subdivision
  The object of this Subdivision is to ensure that CGT considerations are not an impediment to the restructure of trusts, whilst ensuring that subsequent changes to the manner and extent to which beneficiaries can benefit from the trusts are subject to appropriate tax consequences.

126‑225  When a roll‑over may be chosen
 (1) A roll‑over may be chosen for a *CGT asset (the roll‑over asset) if:
 (a) the trustee of a trust (the transferring trust):
 (i) creates a trust (the receiving trust), by declaration or settlement, over one or more CGT assets that include the roll‑over asset; or
 (ii) transfers the roll‑over asset to an existing trust (the receiving trust);
  at a particular time (the transfer time); and
 (b) if subparagraph (a)(ii) applies—the receiving trust has no CGT assets, other than small amounts of cash or debt, just before the transfer time; and
 (c) just after the transfer time:
 (i) each of the trusts has the same beneficiaries; and
 (ii) the receiving trust has the same *classes of *membership interests that the transferring trust had just before, and has just after, the transfer time; and
 (iii) the sum of the *market values of each beneficiary's membership interests of a particular class in both trusts is substantially the same as the sum of the market values, just before the transfer time, of the beneficiary's membership interests of that class in both trusts; and
 (d) the requirement in section 126‑230 is met; and
 (e) the exceptions in section 126‑235 do not apply.

Exception if other roll‑over assets already transferred
 (2) However, paragraph (1)(b) does not apply if:
 (a) the roll‑over asset is transferred to the receiving trust under an *arrangement; and
 (b) the roll‑over asset was an asset of the transferring trust just before the arrangement was made; and
 (c) at least one other asset of the receiving trust:
 (i) is an asset for which a roll‑over was obtained under this Subdivision for the trusts; and
 (ii) is an asset over which the receiving trust was created, or was transferred