Document ID: chunk:federal_register_of_legislation:C2017A00055:clause:1_19:p1
Version: federal_register_of_legislation:C2017A00055
Segment Type: clause
Provision Reference: sch 1 cl 19 (pt 1/2)
Character Range: 12769–15435

19  At the end of Subdivision 294‑B
Add:

294‑125  Pooled superannuation trust using proportionate or alternative exemption method—deemed sale and purchase of CGT asset

Application
 (1) This section applies in relation to a CGT asset of a trust if:
 (a) the trust is a pooled superannuation trust throughout the pre‑commencement period; and
 (b) either of the following is greater than nil:
 (i) the proportion mentioned in subsection 295‑400(1) of the Income Tax Assessment Act 1997 in respect of the trust for the 2016‑17 income year;
 (ii) if the trustee has made a choice under subsection 295‑400(3) of that Act—the percentage mentioned in subsection 295‑400(4) of that Act in respect of the trust for the 2016‑17 income year; and
 (c) the trust held the asset throughout the pre‑commencement period; and
 (d) the trustee of the trust makes a choice for the purposes of this paragraph in respect of the asset in accordance with subsection (2).
 (2) A choice made for the purposes of paragraph (1)(d):
 (a) is to be in the approved form; and
 (b) can only be made on or before the day by which the trustee of the trust is required to lodge the trust's income tax return for the 2016‑17 income year; and
 (c) cannot be revoked.

Deemed sale and purchase
 (3) For the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997, the trust is taken:
 (a) to have sold, immediately before 1 July 2017, the asset for a consideration equal to its market value; and
 (b) to have purchased the asset again just after that sale for a consideration equal to its market value.

294‑130  Pooled superannuation trusts using proportionate or alternative exemption method—disregard initial capital gain but recognise deferred notional gain

Application
 (1) This section applies in relation to a CGT asset of a pooled superannuation trust if:
 (a) section 294‑125 applies in relation to the CGT asset; and
 (b) as a result of paragraph 294‑125(3)(a), the trust makes a capital gain in respect of the asset (disregarding this section); and
 (c) the trustee of the trust makes a choice for the purposes of this paragraph in respect of the asset in accordance with subsection (2).
 (2) A choice made for the purposes of paragraph (1)(c):
 (a) is to be in the approved form; and
 (b) can only be made on or before the day by which the trustee of the trust is required to lodge the trust's income tax return for the 2016‑17 income year; and
 (c) cannot be revoked.

Disregard initial capital gain
 (3) Disregard the capital gain mentioned in paragraph (1)(b).

Recognition of deferred notional gain
 (4) The deferred notional gain is the 2016‑17 non‑exempt proportion of the