Income Tax (Transitional Provisions) Act 1997

This section applies if:

at the start of the pre‑commencement period, a CGT asset of a fund is a segregated current pension asset of the fund; and

either:

at a time (the cessation time) in the pre‑commencement period, the asset ceases to be a segregated current pension asset of the fund; or

at the start of 1 July 2017 (also the cessation time), the asset ceases to be a segregated current pension asset of the fund because it supports a superannuation income stream covered by subsection 307‑80(3) of the Income Tax Assessment Act 1997; and

the fund held the CGT asset throughout the pre‑commencement period (disregarding subsection (3)); and

the fund is a complying superannuation fund throughout the period:

starting at the start of the pre‑commencement period; and

ending at the cessation time; and

the trustee of the fund makes a choice for the purposes of this paragraph in respect of the asset in accordance with subsection (2).

A choice made for the purposes of paragraph (1)(e):

is to be in the approved form; and

can only be made on or before the day by which the trustee of the fund is required to lodge the fund’s income tax return for the 2016‑17 income year; and

cannot be revoked.

For the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997, the fund is taken:

to have sold, immediately before the cessation time, the asset for a consideration equal to its market value; and

to have purchased the asset again at the cessation time for a consideration equal to its market value.