Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 Section 112 - 150 (table item 7)
Omit "one small superannuation fund to another", substitute "a small superannuation fund to another complying superannuation fund".
2 Subparagraph 126 - 5(1)(f)(ii)
Repeal the subparagraph, substitute:
(ii) that, because of such a law, prevents a court making an order about matters to which the agreement applies, or that is inconsistent with the terms of the agreement in relation to those matters, unless the agreement is varied or set aside.
3 Subparagraph 126 - 15(1)(f)(ii)
Repeal the subparagraph, substitute:
(ii) that, because of such a law, prevents a court making an order about matters to which the agreement applies, or that is inconsistent with the terms of the agreement in relation to those matters, unless the agreement is varied or set aside.
4 Paragraph 126 - 140(1)(c)
Omit "small", substitute " * complying".
5 Paragraph 126 - 140(2)(b)
Omit "small", substitute " * complying".
6 After subsection 126 - 140(2)
Insert:
Transfer of own interest in a small superannuation fund
(2A) There is also a roll - over if:
(a) an individual has an interest in a * small superannuation fund (the first fund ); and
(b) the individual's * spouse, or former spouse, also has an interest in the first fund; and
(c) the trustee (the transferor ) of the first fund transfers a * CGT asset to the trustee (the transferee ) of another * complying superannuation fund for the benefit of the individual; and
(d) the transfer is in accordance with an award, order or agreement mentioned in subsection (2B); and
(e) if the transfer is part of a series of transfers in accordance with the award, order or agreement--the individual will no longer have an interest in the first fund when the series of transfers is complete; and
(f) if the transfer is not part of a series of transfers in accordance with the award, order or agreement--as a result of the transfer, the individual no longer has an interest in the first fund; and
(g) there has not been a roll - over under subsection (1) or (2) or this subsection in relation to the transfer of another CGT asset from the first fund, where the transfer was:
(i) made because of the award, order or agreement; and
(ii) for the benefit of that spouse, or former spouse; and
(h) if the transfer is in accordance with an agreement mentioned in paragraph (2B)(d) or (e), the conditions in subsection (2C) are satisfied.
Note: CGT event E2 may apply to the transfer.
(2B) The awards, orders and agreements are:
(a) an award made in an arbitration referred to in section 13H of the Family Law Act 1975 or a corresponding award made in an arbitration under a corresponding * State law, * Territory law or * foreign law; or
(b) a court order made under section 79 or subsection 90AE(2) or 90AF(2) of the Family Law Act 1975 or a corresponding foreign law; or
(c) a court order made under a State law, Territory law or foreign law relating to de facto marriage breakdowns that corresponds to an order made under section 79 or subsection 90AE(2) or 90AF(2) of the Family Law Act 1975 ; or
(d) a financial agreement made under Part VIIIA of the F amily Law Act 1975 that is binding because of section 90G of that Act or a corresponding written agreement that is binding because of a corresponding foreign law; or
(e) a written agreement:
(i) that is binding under a State law, Territory law or foreign law relating to de facto marriage breakdowns; and
(ii) that, because of such a law, prevents a court making an order about matters to which the agreement applies, or that is inconsistent with the terms of the agreement in relation to those matters, unless the agreement is varied or set aside.
(2C) The conditions are that:
(a) at the time of the transfer:
(i) the * spouses, or former spouses, involved are separated; and
(ii) there is no reasonable likelihood of cohabitation being resumed; and
(b) the transfer happened because of reasons directly connected with the breakdown of the marriage or de facto marriage.
(2D) For the purposes of subsection (2C), the question whether * spouses, or former spouses, have separated is to be determined in the same way as it is for the purposes of section 48 of the Family Law Act 1975 (as affected by sections 49 and 50 of that Act).
7 Application
The amendments made by this Schedule apply in relation to CGT events that happen on or after 1 July 2007, regardless of when the award, court order or agreement was made.