Section 725Income Tax Assessment Act 1997 (Cth)

‑1  What this Division is about

If, under a scheme, value is shifted from equity or loan interests in a company or trust to other equity or loan interests in the same company or trust (including interests issued at a discount), this Division:

(a) adjusts the value of those interests for income tax purposes to take account of material changes in market value that are attributable to the value shift; and

(b) treats the value shift as a partial realisation to the extent that value is shifted between interests held by different owners, and in some other cases.

However, it does so only for interests that are owned by entities involved in the value shift.

Sourced from the Federal Register of Legislation at 25 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.

Related sections

Research how courts apply s 725

BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.

Try BriefBridge free