Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 2/8)
Character Range: 2124703–2127380

asset at least 12 months before the *CGT event, if the condition in that subsection would not be met were it to be applied to the original entity and the CGT event.
 (3) Subsection 115‑45(6) applies as if the company or trust had *acquired the original asset at least 12 months before the *CGT event, if the condition in subsection 115‑45(5) would not be met were it to be applied to the original entity and the CGT event.

115‑34  Further special rule about time of acquisition for certain replacement‑asset roll‑overs
 (1) This section applies if:
 (a) a *CGT event happens to your *share in a company; and
 (b) at the time of the CGT event, you had owned the share for less than 12 months; and
 (c) you *acquired the share as a replacement asset for:
 (i) a *replacement‑asset roll‑over under Subdivision 122‑A (disposal of assets by individuals or trustees to a wholly‑owned company) for which you *disposed of a *CGT asset, or all the assets of a *business, to the company; or
 (ii) a replacement‑asset roll‑over under Subdivision 122‑B (disposal of assets by partners to a wholly‑owned company) for which you disposed of your interests in a CGT asset, or your interests in all the assets of a business, to the company; or
 (iii) a replacement‑asset roll‑over under Subdivision 124‑N (disposal of assets by trusts to a company) for which a trust of which you were a beneficiary disposed of all of its CGT assets to the company.

Application of tests about when you acquired the share
 (2) Sections 115‑25 and 115‑40 apply as if you had *acquired the *share at least 12 months before the *CGT event.

Application of tests about the company's assets
 (3) For each asset mentioned in subparagraph (1)(c)(i), subsections 115‑45(4) and (6) apply as if the company had *acquired that asset when you acquired it.
 (4) For each asset mentioned in subparagraph (1)(c)(ii), subsections 115‑45(4) and (6) apply as if the company had *acquired that asset when you acquired your interests in it.
 (5) For each asset mentioned in subparagraph (1)(c)(iii), subsections 115‑45(4) and (6) apply as if the company had *acquired that asset when the trust acquired it.

Relationship with Subdivision 109‑A
 (6) This section has effect despite Subdivision 109‑A (which contains rules about the time of acquisition of CGT assets).

What are not discount capital gains?

115‑40  Capital gain resulting from agreement made within a year of acquisition
  Your *capital gain on a *CGT asset from a *CGT event is not a discount capital gain (despite section 115‑5) if the CGT event occurred under an agreement you made within 12 months of *acquiring the CGT asset.
Note: Section 115‑30 or 115‑34 may