Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Apply this section separately for the interposed trust in relation to the * ownership interests in each * stapled entity that the trustee of the interposed trust * acquires under the * scheme.
(2) A whole number of * ownership interests in a * stapled entity that the trustee * acquires under the * scheme are taken to have been acquired before 20 September 1985 if any of the stapled entity's assets as at the completion time were acquired by it before that day.
Note: Generally, a capital gain or capital loss from a CGT asset acquired before 20 September 1985 can be disregarded: see Division 104.
(3) The number (worked out as at the completion time) is the greatest possible that (when expressed as a percentage of all the * ownership interests in the * stapled entity * acquired by the trustee) does not exceed:
(a) the * market value of the stapled entity's assets that it acquired before 20 September 1985; less
(b) its liabilities (if any) in respect of those assets;
expressed as a percentage of the market value of all the stapled entity's assets less all of its liabilities. The amounts in paragraphs (a) and (b) are to be worked out as at the completion time.
(4) The first element of the * cost base and * reduced cost base of each of the trustee's * ownership interests in that * stapled entity that are not taken by subsection (3) to have been * acquired before 20 September 1985 is such proportion as is reasonable of the total of the cost bases (as at the completion time) of that stapled entity's assets that it acquired on or after that day less its liabilities (if any) in respect of those assets.
(5) In applying this section:
(a) a liability of a * stapled entity that is not a liability in respect of a specific asset or assets of the stapled entity is a liability in respect of all the assets of the stapled entity; and
(b) if a liability is in respect of 2 or more assets, the proportion of the liability that is in respect of any one of those assets is such amount as is reasonable having regard to the * market values of each of those assets.