Income tax: consolidation: is a unit in a cash management trust a retained cost base asset?

Taxation Determination TD 2005/27 provides the Commissioner's view on whether a unit in a cash management trust is a retained cost base asset for the purposes of paragraph 705-25(5)(b) of the Income Tax Assessment Act 1997 (ITAA 1997). TD 2005/27 explains that a unit in a cash management trust is not a retained cost base asset. To be a retained cost base asset, a unit in a cash management trust would need to be a right to receive a specified amount of Australian currency in accordance with paragraph 705-25(5)(b) of the ITAA 1997.

Item 121 of Schedule 5 to the Tax Laws Amendment (2010 Measures No. 1) Act 2010 amends the ITAA 1997 to provide when a unit in a cash management trust is a retained cost base asset. On this basis TD 2005/27 is withdrawn.