Document ID: chunk:federal_register_of_legislation:C2021A00072:clause:3_1:p1
Version: federal_register_of_legislation:C2021A00072
Segment Type: clause
Provision Reference: sch 3 cl 1 (pt 1/2)
Character Range: 11080–13801

1  After Division 134
Insert:

Division 137—Granny flat arrangements

Table of Subdivisions
137‑A—When CGT events do not happen

Subdivision 137‑A—When CGT events do not happen

Guide to Subdivision 137‑A

137‑1  What this Subdivision is about
      A CGT event does not happen when certain granny flat arrangements are entered into, varied or terminated.

Table of sections

Operative provisions
137‑10 Meaning of key terms
137‑15 CGT event does not happen when a certain kind of granny flat arrangement is entered into
137‑20 CGT event does not happen when a certain kind of granny flat arrangement is varied
137‑25 CGT event does not happen when a certain kind of granny flat arrangement is terminated

Operative provisions

137‑10  Meaning of key terms
 (1) An individual holds a granny flat interest in a *dwelling under an *arrangement if the individual has a right to occupy the dwelling for life that has been conferred by the arrangement.
 (2) An individual is eligible for a granny flat interest at a particular time if:
 (a) the individual reached *pension age at or before that time; or
 (b) the individual:
 (i) needs, because of a disability, assistance to carry out most day‑to‑day activities; and
 (ii) is likely to continue to need that assistance, because of that disability, for at least 12 months after that time.
 (3) This Subdivision applies:
 (a) to a *dwelling's *adjacent land in a corresponding way to the way Subdivision 118‑B applies to the adjacent land; or
 (b) to an *adjacent structure of a flat or home unit in a corresponding way to the way Subdivision 118‑B applies to the adjacent structure.
Note: Subsections 118‑120(1) and (5) provide that Subdivision 118‑B (about main residences) applies to adjacent land and adjacent structures as if they were a dwelling.

137‑15  CGT event does not happen when a certain kind of granny flat arrangement is entered into
  A *CGT event does not happen, to the extent it relates to creating a *granny flat interest in a *dwelling under an *arrangement by entering into the arrangement at a particular time (the start time), if:
 (a) the individual who holds, or who is to hold, the granny flat interest under the arrangement is *eligible for a granny flat interest at the start time; and
 (b) another individual:
 (i) holds an *ownership interest in the dwelling at the start time; or
 (ii) agrees, under the arrangement, to *acquire an ownership interest in a dwelling that is to be the dwelling in which the first‑mentioned individual is to hold the granny flat interest; and
 (c) at the start time, both individuals are parties to the arrangement; and
 (d) the arrangement:
 (i) is in writing; and
 (ii) indicates an intention for the parties to