Income Tax Assessment Act 1997

This section applies in relation to a single *arrangement if:

the replacement entity for the arrangement knows, or could reasonably be expected to know:

that a roll‑over under section 124‑780 or 124‑781 has been, or will be, obtained in relation to the arrangement; and

that there is a *common stakeholder for the arrangement (disregarding subsections 124‑783(4) and (5)); and

subsection (2) is satisfied for the arrangement.

If this section applies, the first element of the cost base and reduced cost base of interests in the original entity acquired under the arrangement is worked out under section 124‑784B.

This subsection is satisfied for the *arrangement if the result of step 2 is more than 80% of the result of step 3.

original interests in the original entity;

any interests issued by the original entity to an acquiring entity under the arrangement in respect of other original interests in the original entity cancelled under the arrangement.

if the replacement entity is a company—*shares *on issue by the replacement entity; and

if the replacement entity is a company—options, rights and similar interests issued by the replacement entity that give the holder an entitlement to acquire a share in the replacement entity at or after the completion time; and

if the replacement entity is a trust—units or other interests in the replacement entity; and

if the replacement entity is a trust—options, rights or similar interests issued by the replacement entity that gives the holder an entitlement to acquire a unit or other interest in the replacement entity at or after the completion time.

For the purposes of:

subsection (2); and

step 5 of the method statement in subsection 124‑784B(2);

If qualifying interests in more than one original entity are *acquired under the *arrangement, then, for the purposes of subsections (1) and (2):

those interests of each of those original entities are taken to have been acquired under separate arrangements; and

those separate arrangements are taken to have happened in the same order as the acquisitions.

If qualifying interests in more than one original entity:

would be taken by subsection (4) to have been *acquired under separate *arrangements happening at the same time; or

are acquired under separate arrangements that commence at the same time;

An interest in an entity has an officially quoted price at a particular time if, during the one week period starting on the day in which that time occurred, there was at least one transaction on the relevant stock exchange in interests of that class. That price is the weighted average of the prices at which those interests were traded on that stock exchange during that period.

For the purposes of subsection (6), if an interest is quoted on 2 or more *approved stock exchanges on that day, the officially quoted price of the interest is determined under subsection (6) in respect of whichever of those the entity chooses.