Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:2_2:p5
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 5/14)
Character Range: 728519–731301

Assessment Act 1997.

Note: This provision covers the case where the roll‑over occurred in the 1997‑98 income year or an earlier one and the relevant CGT event in the 1998‑99 income year or a later one.

108‑85  Improvement threshold

  Despite section 108‑85 of the Income Tax Assessment Act 1997, the Commissioner is entitled to publish the improvement threshold for the 1998‑99 income year:

 (a) before the beginning of that year; or

 (b) within a reasonable time after the beginning of that year.

Division 109—Acquisition of CGT assets

Table of Subdivisions

109‑A Operative rules

Subdivision 109‑A—Operative rules

109‑5  General acquisition rules

 (1) If:

 (a) the circumstances specified in the second column of the table in subsection 109‑5(2) of the Income Tax Assessment Act 1997 for CGT event E1, E2 or E3 happened in relation to an asset before 12 noon, by legal time in the Australian Capital Territory, on 12 January 1994; and

 (b) the trustee that owned the asset just after those circumstances happened also owned it at all times from then until the start of the trustee's 1998‑99 income year;

the question whether those circumstances resulted in an acquisition of an asset by the trustee is to be determined under the Income Tax Assessment Act 1936 as in force just before 12 noon, by legal time in the Australian Capital Territory, on 12 January 1994.

 (2) The acquisition rule for CGT event E9 (about an entity creating a trust over future property) in the table in subsection 109‑5(2) of the Income Tax Assessment Act 1997 does not apply to you as trustee if the agreement to create the trust was made before 12 noon, by legal time in the Australian Capital Territory, on 12 January 1994.

Division 110—Cost base and reduced cost base

Table of Subdivisions

110‑A Cost base

Subdivision 110‑A—Cost base

110‑35  Incidental costs

  Despite subsection 110‑35(2) of the Income Tax Assessment Act 1997, expenditure for professional advice about taxation incurred before 1 July 1989 does not form part of the cost base of a CGT asset.

Division 112—Modifications to cost base and reduced cost base

Table of Subdivisions

112‑A General rules

Subdivision 112‑A—General rules

112‑20  Market value substitution rule

  In working out the cost base and reduced cost base of a CGT asset:

 (a) that you acquired before 16 August 1989; and

 (b) to which paragraph 112‑20(2)(b) or (c), or item 5 or 6 in the table in subsection 112‑20(3), of the Income Tax Assessment Act 1997 would apply (apart from this section);

disregard subsections 112‑20(2) and (3) of that Act.

Note: This section preserves the pre‑16 August 1989 position for, among other things, shares or units issued or allotted to you by allowing the market value