Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p53
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 53/59)
Character Range: 2663714–2666293

original interests, you apply the rules in this section as if your original interests for which you chose the roll‑over were your only original interests.

125‑85  Cost base adjustments where CGT event happens but no roll‑over chosen
 (1) You must adjust the *cost base and *reduced cost base of an *ownership interest you own in a company or trust if:
 (a) a *demerger happens to a *demerger group of which the company or trust is a member; and
 (b) you owned an original interest in the *head entity of the demerger group just before the demerger; and
 (c) a *CGT event happens to the original interest and you *acquire a new interest under the demerger; and
 (d) you do not choose a roll‑over under this Subdivision for the original interest.
 (2) The adjustments you must make are the same as the adjustments you would have to make under section 125‑80 for the *cost bases and *reduced cost bases of the remaining original interests and new interests just after the *CGT event if you could have chosen a roll‑over under this Subdivision for the *demerger and you had done so.

125‑90  Cost base adjustments where no CGT event
 (1) You must adjust the *cost base and *reduced cost base of an *ownership interest you own in a company or trust if:
 (a) a *demerger happens to a *demerger group of which the company or trust is a member; and
 (b) you owned an original interest in the *head entity of the demerger group just before the demerger; and
 (c) no *CGT event happens to the original interest, but you *acquire a new interest under the demerger.
 (2) The adjustments you must make are the same as the adjustments you would have to make under section 125‑80 if you could have chosen a roll‑over under this Subdivision for the *demerger and you had done so.

125‑95  No other cost base adjustment after demerger
  If you have to make adjustments to the *cost base and *reduced cost base of your *ownership interests under section 125‑80, 125‑85 or 125‑90 because of a *demerger, no other adjustment can be made under this Act to those cost bases and reduced cost bases because of something that happens under the demerger.
Note: Those sections deal with any value shift that might occur under the demerger and avoid the need for the general value shifting regime to apply.

125‑100  No further demerger relief in some cases
  This Division does not apply to the remaining *ownership interests in a *demerged entity if one or more members of the *demerger group *disposed of or cancelled less than 100% of the total ownership interests of that group in the demerged entity.