Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 2) 1992No. 80, 1992 - SECT 48

48. Section 160ZZRE of the Principal Act is amended by adding at the end the
following subsection:

"(6) If:

   (a)  at the first asset disposal time, a taxpayer (in this subsection
        called the 'second taxpayer') held an asset, being:

        (i)    a share in the transferor that was acquired by the second
               taxpayer on or after 20 September 1985 (in this subsection
               called a 'post-CGT share'); or

        (ii)   a loan to the transferor that was acquired by the second
               taxpayer on or after 20 September 1985 (in this subsection
               called a 'post-CGT loan'); and

   (b)  either:

        (i)    at the first asset disposal time, the second taxpayer held a
               share in the transferor that was acquired by the second
               taxpayer before 20 September 1985; or

        (ii)   whichever of the following is applicable:

                (A)  in the case of a post-CGT share - at the first asset
                     disposal time, the second taxpayer held shares in the
                     transferor belonging to 2 or more classes of shares;

                (B)  in the case of a post-CGT loan - at the first asset
                     disposal time, the second taxpayer held 2 or more loans
                     to the transferor; and

   (c)  the application of subsection (3) to the post-CGT share, or the
        application of subsection (4) to the post-CGT loan, as the case may
        be, would be unreasonable; then:

   (d)  in the case of a post-CGT share - subsection (3) does not apply to the
        post-CGT share; and

   (e)  in the case of a post-CGT loan - subsection (4) does not apply to the
        post-CGT loan; and

   (f)  the cost base, the indexed cost base or the reduced cost base of the
        post-CGT share or the post-CGT loan to the second taxpayer is reduced
        by such amount (if any) as is reasonable having regard to:

        (i)    the circumstances in which the post-CGT share or the post-CGT
               loan was acquired by the second taxpayer; and

        (ii)   the extent (if any) to which the market value of thepost-CGT
               share or the post-CGT loan was reduced as a result of the
               disposal of the first asset at the first asset disposal time.".