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Do the changes to the operation of the taxpayer superannuation fund result in the creation of a new eligible entity, for the purposes of Part IX of the Income Tax Assessment Act 1936 (ITAA 1936), such that any taxable gain is crystallised under CGT Event A1 (section 104-10) of the Income tax Assessment Act 1997 (ITAA 1997)?

No. The execution of the specified changes to the operation of the taxpayer superannuation fund, by the taxpayer, does not result in a taxable gain being crystallised under CGT Event A1 (section 104-10) of the ITAA 1997.

The taxpayer superannuation fund ('the fund') is a superannuation scheme established by Act of Parliament ('the fund Act'), with a board as trustee. The rules of the scheme are also contained in the fund Act. The fund is a complying fund for the purposes of the ITAA 1936.

Legislation was enacted to enable the fund to be regulated under the Superannuation Industry (Supervision) Act 1993 , and a proprietary company was established to act as trustee (the new trustee). The new trustee has adopted a trust deed replicating, as far as possible, the benefit provisions contained in the fund Act, as well as other provisions. The fund Act has been repealed and the investments and liabilities of the fund transferred to the new trustee.

Notwithstanding the changes made, the taxpayer eligible entity has continued intact, and no new eligible entity has been created. The assets of the fund have been held by the trustees, on substantially the same terms, on behalf of the same eligible entity and its members, at all relevant times.

Section 104-10 of the ITAA 1997 provides: (1) [Application] CGT event A1 happens if you *dispose of a *CGT asset. (2) [Change of ownership requirement] You dispose of a *CGT asset if a change of ownership occurs from you to another entity, whether because of some act or event or by operation of law. However, a change of ownership does not occur: (a) if you stop being the legal owner of the asset but continue to be its beneficial owner; or (b) merely because of a change of trustee. * denotes a term defined in subsection 995-1(1) of the ITAA 1997

Paragraph 104-10(2)(b) of the ITAA 1997 makes it clear that Event A1 does not occur by reason of the change of trustee. Notwithstanding the changes made to the operation of the fund, no new fund or eligible entity has been created for the purposes of Part IX of the ITAA 1936. The fund property has at all times, therefore, been held on behalf of the same eligible entity. Accordingly, CGT event A1 does not occur as a result of the changes in question.