68Transitional provisions for capital gains tax

68 Transitional provisions for capital gains tax

(1) Where: (a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and (b) the market value of the asset at the changeover time is greater than the amount that would be the indexed cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time; the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether a capital gain accrues in the event of a subsequent disposal of the asset by it: (c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that indexed cost base; (d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time; (e) the reference in subsection 160Z(3) of the Income Tax Assessment Act 1936 to the day on which the asset was acquired by the taxpayer shall be taken to be a reference to the day on which the asset was actually acquired by Australia Post. (2) If the asset is disposed of within 12 months of its actual acquisition by Australia Post, subsection (1) has effect as if the references in that subsection to the indexed cost base to Australia Post in relation to the asset were references to the cost base to Australia Post in relation to the asset. (3) Where: (a) Australia Post owns an asset at the end of 30 June 1990 (in this subsection called the “changeover time”); and (b) the market value of the asset at the changeover time is less than the amount that would be the reduced cost base to Australia Post in relation to the asset if Australia Post disposed of the asset at that time; the following provisions have effect for the purpose of ascertaining under Part IIIA of the Income Tax Assessment Act 1936 whether Australia Post incurred a capital loss in the event of a subsequent disposal of the asset by it: (c) Australia Post shall be taken to have disposed of the asset at the changeover time for a consideration equal to the amount of that reduced cost base; (d) Australia Post shall be taken to have immediately re-acquired the asset for a consideration equal to the market value of the asset at the changeover time. (4) Expressions used in this section, and in Part IIIA of the Income Tax Assessment Act 1936, have the same respective meanings as in that Part.