Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) There is a roll - over if:
(a) an entity (also the original interest holder ) exchanges:
(i) a unit or other interest (also the holder's original interest ) in a trust (also the original entity ) for a unit or other interest (also the holder's replacement interest ) in another trust (also the acquiring entity and the replacement entity ); or
(ii) an option, right or similar interest (also the holder's original interest ) issued by the original entity that gives the holder an entitlement to acquire a unit or other interest in the original entity for a similar interest (also the holder's replacement interest ) in another trust (also the acquiring entity and the replacement entity ); and
(b) entities have * fixed entitlements to all of the income and capital of the original entity and the acquiring entity; and
(c) the exchange is in consequence of an * arrangement that satisfies subsection (2) or (2A); and
(d) the conditions in subsections (3) and (4) are satisfied.
Note 1: There are some exceptions: see section 124 - 795.
Note 2: The original interest holder can obtain only a partial roll - over if the capital proceeds for its original interest include something other than its replacement interest: see section 124 - 790.
Conditions for arrangement
(2) The * arrangement must:
(a) result in the acquiring entity owning 80% or more of the * trust voting interests in the original entity or, if there are none, 80% or more of the units or other interests in the original entity; and
(b) be one in which at least all owners of trust voting interests (or of units or other interests) in the original entity (except the acquiring entity) could participate; and
(c) be one in which participation was available on substantially the same terms for all of the owners of interests or units of a particular type in the original entity.
Conditions for arrangement--takeover bids
(2A) The * arrangement must:
(a) satisfy paragraph (2)(a); and
(b) be, be part of, or include a takeover bid (within the meaning of the Corporations Act 2001 ) for the original interests by the acquiring entity that is not carried out in contravention of the provisions mentioned in paragraphs 612(a) to (g) of that Act.
Note: For exemption and modification of provisions by ASIC (and review by the takeovers panel) see Part 6.10 of the Corporations Act 2001 . For Court declarations excusing contraventions see section 1325D of that Act.
Conditions for roll - over
(3) The conditions are:
(a) the original interest holder * acquired its original interest on or after 20 September 1985; and
(b) apart from the roll - over, it would make a * capital gain from a * CGT event happening in relation to its original interest; and
(c) it chooses to obtain the roll - over or, if section 124 - 782 applies to it for the * arrangement, it and the trustee of the acquiring entity jointly choose to obtain the roll - over; and
(d) if that section applies to it, it informs that trustee in writing of the * cost base of its original interest as at the time just before a CGT event happened in relation to it.
Note: If the original interest holder also exchanges a CGT asset that it acquired before 20 September 1985, the cost base of any interest received in exchange for it is worked out under section 124 - 800.
Further roll - over conditions in certain cases
(4) These conditions must be satisfied if the original interest holder and the trustee of the acquiring entity did not deal with each other at * arm's length and neither the original entity nor the acquiring entity had at least 300 beneficiaries just before the * arrangement started:
(a) the * market value of the original interest holder's * capital proceeds for the exchange is at least substantially the same as the market value of its original interest; and
(b) its replacement interest carries the same kind of rights and obligations as those attached to its original interest.
Note: There are some cases where a trust will not be regarded as having 300 beneficiaries: see section 124 - 810.
CUFS
(5) This section applies to the holder of a Chess Unit of Foreign Security as if the holder held the underlying interests that the unit represents.
Note: A Chess Unit of Foreign Security is an interest, traded on the stock market operated by ASX Limited, in a foreign share, unit or interest.
Meaning of trust voting interest
(6) A trust voting interest in a trust is an interest in the trust that confers rights of the same or a similar kind as the rights conferred by a * voting share in a company.