Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) You can choose to disregard all or part of each * capital gain to which this Subdivision applies.
Note 1: You make capital gains equal to any parts that you do not choose to disregard.
Note 2: Section 103 - 25 tells you when the choice must be made.
(2) However, the choice must be made in a way that ensures that:
(a) for an individual--your * CGT retirement exemption limit is not exceeded; or
(b) for a company or trust--the CGT retirement exemption limit of each individual for whom the choice is made is not exceeded.
(3) The amount chosen for the asset is its CGT exempt amount .
(4) The * CGT exempt amount must be specified in writing.
(5) If a company or trust is making the choice and it has more than one * CGT concession stakeholder, it must specify in writing the percentage of each * CGT asset's * CGT exempt amount that is attributable to each of those stakeholders. One or more of the percentages may be nil, but all of the percentages must add up to 100%.
Example: Daryl is a significant individual in a company. The company specifies 90% for Daryl under subsection (5) (which means that the percentage specified for the other stakeholder must be 10%). Daryl's retirement exemption limit is $500,000.
To determine whether subsection (2) is complied with, Daryl would take 90% of the asset's CGT exempt amount, add that to amounts previously specified in choices made by or for him under this Subdivision and see whether the total exceeds $500,000.
Note: Subsections (4) and (5) are exceptions to the general rule about choices in section 103 - 25.