Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1992No. 35, 1992 - SECT 27

27. After section 73A of the Principal Act the following section is inserted:
Section 73A roll-over relief where CGT roll-over relief allowed under section
160ZZM, 160ZZMA, 160ZZN, 160ZZNA or 160ZZO (Roll-over relief where CGT
roll-over relief allowed)

"73AA.(1) This section applies to the disposal of a building, or part of a
building, by a taxpayer (in this section called the 'transferor') to another
taxpayer (in this section called the 'transferee') if:

   (a)  either:

        (i)    in a case where the transferor is not a partnership - section
               160ZZM, 160ZZMA, 160ZZN or 160ZZO applies to the disposal of
               the building or the part of the building by the transferor; or

        (ii)   if the transferor is a partnership - the building or the part
               of the building is partnership property of the partnership and
               section 160ZZNA applies to the corresponding disposal, by all
               of the partners in the partnership, of their interests in the
               building or the part of the building; and

   (b)  deductions have been allowed or are allowable under subsection 73A(2)
        to the transferor in respect of the building or the part of the
        building. (No balancing charges)

"(2) Subsection 73A(4) (which deals with balancing charges) does not apply to
the disposal of the building or the part of the building by the transferor.
(Transferee to inherit certain characteristics from transferor)

"(3) Section 73A applies as if:

   (a)  the transferee had acquired the building or the part of the building
        for a consideration equal to the cost of the building or the part of
        the building to the transferor; and

   (b)  deductions were not allowable to the transferee under subsection
        73A(2) in respect of:

        (i)    so much of the cost of the building or the part of the building
               to the transferor as was allowed or allowable as a deduction to
               the transferor under that subsection in respect of the building
               or the part of the building; or

        (ii)   if there have been 2 or more prior successive applications of
               this section - so much of the cost of the building or the part
               of the building to the transferor as was allowed or allowable
               as a deduction to the prior successive transferors under that
               subsection in respect of the building or the part of the
               building; and

   (c)  deductions were not allowable to the transferor under subsection
        73A(2) in respect of the building or the part of the building for the
        year of income in which the disposal took place or for a subsequent
        year of income. (Subsection 73A(2A) - special rules)

"(4) If subsection 73A(2A) applies to the transferor and in relation to the
building or the part of the building, that subsection applies in relation to
the transferee and in relation to the building or the part of the building.
(Disposal by transferee where no roll-over relief - inheritance of deductions)

"(5) If:

   (a)  after the disposal of the building or the part of the building to the
        transferee, the building or the part of the building is lost or
        destroyed or the transferee disposes of the building or the part of
        the building; and

   (b)  in the case of a disposal by the transferee - this section does not
        apply to the disposal; then, for the purposes of the application of
        subsection 73A(4) in relation to the loss, destruction or disposal,
        the total of:

   (c)  the deductions allowed or allowable to the transferor under subsection
        73A(2) in relation to the building or the part of the building; and

   (d)  if there have been 2 or more prior successive applications of this
        section - the deductions allowed or allowable to the prior successive
        transferors under subsection 73A(2) in relation to the building or the
        part of the building; are taken to have been deductions allowed or
        allowable to the transferee under subsection 73A(2) in relation to the
        building or the part of the building. (Meaning of 'cost')

"(6) A reference in this section to the cost of a building or of a part of a
building to the transferor is a reference to expenditure of a capital nature
incurred by the transferor in the construction or acquisition of the building
or the part of the building, or in making any alteration or addition to the
building or to the part of the building.".