Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.218

  (1)   This section applies to you in relation to a * CGT event if:

  (a)   the CGT event happens in relation to a * CGT asset; and

  (b)   just before the CGT event happens, you hold the CGT asset as trustee of a trust; and

  (c)   the trust was a * special disability trust on at least one of the days on which you held the CGT asset.

Note:   This section may not apply if the principal beneficiary of the trust is a foreign resident (see subsection   (5)).

  (2)   For the purposes of applying this Subdivision in relation to the * CGT event, on each day to which paragraph   (1)(c) applies:

  (a)   treat yourself as holding the * CGT asset personally (and not as trustee of the trust); and

  (b)   if the * principal beneficiary of the trust uses the applicable * dwelling in a particular way on that day--treat yourself as using the dwelling in that way on that day.

Example:   If the principal beneficiary uses the dwelling as his or her main residence on the day, then treat yourself as using the dwelling as your main residence on that day.

Note 1:   The CGT asset need not be a dwelling (or an ownership interest in a dwelling) if it is land adjacent to a dwelling, an adjacent structure of a flat or home unit, or an ownership interest in such an asset.

Note 2:   If the trustee is an individual, the individual's actual circumstances are ignored. Similarly, this subsection does not affect how this Subdivision applies for the individual's actual circumstances. See section   960 - 100.

  (3)   If you are not an individual, treat yourself as being an individual for the purposes of applying this Subdivision in relation to the * CGT event.

  (4)   If the * CGT asset, or your * ownership interest in it, * passed to you as a beneficiary in a deceased estate:

  (a)   treat the deceased as never having used the applicable * dwelling for the * purpose of producing assessable income; and

  (b)   treat the dwelling as being the deceased's main residence on each day during the deceased's * ownership period;

for the purposes of applying this Subdivision in relation to the * CGT event.

  (5)   Despite subsection   (1), this section does not apply if, at the time the * CGT event happens, the * principal beneficiary of the trust:

  (a)   is an * excluded foreign resident; or

  (b)   is a foreign resident who does not satisfy the * life events test.