Inserts for
Tax Laws Amendment (2012 Measures No. 5) Bill 2012: Merging superannuation funds

EXPOSURE DRAFT

Commencement information	
Column 1	Column 2	Column 3	
Provision(s)	Commencement	Date/Details	
1.  Schedule #, Part 1	The day this Act receives the Royal Assent.		
2.  Schedule #, Part 2	1 October 2011		
3.  Schedule #, Part 3	The day this Act receives the Royal Assent.		

Schedule #—Merging superannuation funds
Part 1—Extending the application of Division 310
Income Tax Assessment Act 1997
1  Section 310‑1 (note 1)
Repeal the note, substitute:
Note 1:	This Division applies to mergers happening between 24 December 2008 and 30 June 2011 (or, in certain cases, 30 September 2011), or between 1 October 2011 and 1 July 2017, (see Part 3 of Schedule 2 to the Tax Laws Amendment (2009 Measures No. 6) Act 2010).
2  Section 310‑1 (note 2)
Omit “1 July 2013”, substitute “1 July 2019”.
Tax Laws Amendment (2009 Measures No. 6) Act 2010
3  Subsection 2(1) (table item 4)
Repeal the item, substitute:
4.  Schedule 2, Parts 4 and 5	1 July 2019.	1 July 2019	
4  Item 11 of Schedule 2
After “30 June 2011”, insert “, or during the period starting on 1 October 2011 and ending at the end of 1 July 2017”.

Part 2—Further amendments of Division 310
Income Tax Assessment Act 1997
5  Subsection 310‑10(1)
Omit “*complying superannuation fund”, substitute “*complying superannuation fund (other than a *self managed superannuation fund)”.
6  Subparagraphs 310‑35(1)(b)(i) and (ii)
Omit “for that earlier year”, substitute “for the transfer year”.
7  Subparagraphs 310‑40(1)(b)(i) and (ii)
Omit “for that earlier year”, substitute “for the transfer year”.
8  Section 310‑50
Repeal the section, substitute:
310‑50  Choosing the form of the assets roll‑over
	(1)	An entity that chooses a roll‑over under this Subdivision must choose the form of the roll‑over that applies to each of the following:
	(a)	the original assets that are not *revenue assets;
	(b)	the original assets that are revenue assets.
	(2)	In respect of original assets that are not *revenue assets, the entity choosing the roll‑over must choose either section 310‑55 (global asset approach) or 310‑60 (individual asset approach) to apply to the original assets and the corresponding received assets.
	(3)	In respect of original assets that are *revenue assets, the entity choosing the roll‑over must choose either section 310‑65 (global asset approach) or 310‑70 (individual asset approach) to apply to the original assets and the corresponding received assets.
Note:	The entity choosing the form of the roll‑over may choose different forms of roll‑over for its CGT assets and revenue assets.
9  Subsection 310‑55(1) (note)
Omit “subsection 310‑50(1)”, substitute “subsection 310‑50(2)”.
10  Subsection 310‑60(1)
Omit “*capital loss”, substitute “*capital gain or *capital loss”.
11  Subsection 310‑60(1) (note)
Repeal the note, substitute:
Note:	This section only applies if it is chosen to apply under subsection 310‑50(2).
12  Subsection 310‑60(2)
Omit “*capital loss”, substitute “*capital gain or *capital loss”.
13  Subsection 310‑60(3)
Repeal the subsection, substitute:
	(3)	The transferring entity’s *capital proceeds from the transfer event are taken to be an amount equal to:
	(a)	if, apart from this subsection, the event would result in a *capital gain—the asset’s *cost base just before the event; or
	(b)	if, apart from this subsection, the event would result in a *capital loss—the asset’s *reduced cost base just before the event.
14  Subsection 310‑65(1) (note)
Omit “subsection 310‑50(2)”, substitute “subsection 310‑50(3)”.
15  Subsection 310‑70(1)
Omit “incurs a *tax loss”, substitute “derives assessable income (other than a *capital gain) or incurs a *tax loss”.
16  Subsection 310‑70(1) (note)
Repeal the note, substitute:
Note:	This section only applies if it is chosen to apply under subsection 310‑50(3).

Part 3—Application provision
17  Application provision
The amendments made by this Schedule apply in relation to a transferring entity and a receiving entity if:
	(a)	the condition in subsection 310‑10(3), 310‑15(3) or 310‑20(3) of the Income Tax Assessment Act 1997 for those entities is satisfied; and
	(b)	all the transfer events (if any) referred to in subsection 310‑45(2) of that Act for those entities happen;
during the period starting on 1 October 2011 and ending at the end of 1 July 2017.
Note 1:	The effect of paragraph (a) is that all of the members of the original fund will need to become members of a continuing fund during this period.
Note 2:	The effect of paragraph (b) is that the transferring fund needs to cease to hold all relevant assets during this period.