Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 50.80

             (1)  If:

                     (a)  a trust (the existing trust ) covered by item 1.5 was in existence immediately before 1 July 1997; and

                     (b)  on or after 1 July 1997 one or more assets are given to the existing trust (other than in return for valuable consideration) or become part of the trust property under a will;

then, for the purposes of this Subdivision and Subdivision 50-B, the existing trust is taken to be 2 separate trusts (the new trust and the old trust ) as follows:

                     (c)  the new trust is taken to be a trust created after the start of 1 July 1997 that consists of so much of the trust property as consists of those assets together with any income * derived from those assets; and

                     (d)  the old trust is taken to be a trust created before 1 July 1997 that consists of the remainder of the trust property.

             (2)  Where an asset is received in substitution for another asset, subsection (1) applies as if the substituted asset were the other asset.

Guide to Subdivision 50-B