Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A * tax offset to which an * R&D entity is entitled under section 355 - 100 (about R&D) for an income year is subject to the refundable tax offset rules if the amount of the tax offset is worked out in accordance with item 1 of the table in subsection 355 - 100(1) (disregarding subsection 355 - 100(3)).
Note: Otherwise, the tax offset will be a non - refundable tax offset (see item 35 of the table in subsection 63 - 10(1)).
(2) Without limiting its effect apart from this subsection, subsection (1) also has the effect it would have if:
(a) subsection (3) had not been enacted; and
(b) the reference in subsection (1) to an * R&D entity were, by express provision, confined to an R&D entity that:
(i) is a * constitutional corporation; or
(ii) has its registered office (within the meaning of the Corporations Act 2001 ) or principal place of business (within the meaning of that Act) located in a Territory.
(3) Without limiting its effect apart from this subsection, subsection (1) also has the effect it would have if:
(a) subsection (2) had not been enacted; and
(b) this Act applied so that * tax offsets under section 355 - 100 could only be worked out in respect of * R&D activities conducted or to be conducted:
(i) solely in a Territory; or
(ii) solely outside of Australia; or
(iii) solely in a Territory and outside of Australia; or
(iv) for the dominant purpose of supporting * core R&D activities conducted, or to be conducted, solely in a Territory.
Income Tax Assessment Act 1997
No. 38, 1997
Compilation No. 254
Compilation date: 14 October 2024
Includes amendments: Act No. 38, 2024
This compilation is in 12 volumes
Volume 1: sections 1 - 1 to 36 12 pt">- 55
Volume 2: sections 40 - 1 to 67 - 30
Volume 3: sections 70 - 1 to 121 12 pt; font-weight:bold">- 35
Volume 4: sections 122 - 1 to 197 12 pt">- 85
Volume 5: sections 200 - 1 to 253 - 15
Volume 6: sections 275 - 1 to 313 12 pt">- 85
Volume 7: sections 315 - 1 to 420 - 70
Volume 8: sections 615 - 1 to 721 - 40
Volume 9: sections 723 - 1 to 880 12p t">- 205
Volume 10: sections 900 - 1 to 995 - 1
Volume 11: Endnotes 1 to 3
Volume 12: Endnote 4
Each volume has its own contents
This compilation
This is a compilation of the Income Tax Assessment Act 1997 that shows the text of the law as amended and in force on 14 October 2024 (the compilation date ).
The notes at the end of this compilation (the endnotes ) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self - repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Chapter 2--Liability rules of general application
Part 2 - 25--Trading stock
Division 70--Trading stock
Guide to Division 70
70 - 1 What this Division is about
70 - 5 The 3 key features of tax accounting for trading stock
Subdivision 70 - A--What is trading stock
70 - 10 Meaning of trading stock
70 - 12 Registered emissions units
Subdivision 70 - B--Acquiring trading stock
70 - 15 In which income year do you deduct an outgoing for trading stock?
70 - 20 Non - arm's length transactions
70 - 25 Cost of trading stock is not a capital outgoing
70 - 30 Starting to hold as trading stock an item you already own
Subdivision 70 - C--Accounting for trading stock you hold at the start or end of the income year
General rules
70 - 35 You include the value of your trading stock in working out your assessable income and deductions
70 - 40 Value of trading stock at start of income year
70 - 45 Value of trading stock at end of income year
Special valuation rules
70 - 50 Valuation if trading stock obsolete etc.
70 - 55 Working out the cost of natural increase of live stock
70 - 60 Valuation of horse breeding stock
70 - 65 Working out the horse opening value and the horse reduction amount
Subdivision 70 - D--Assessable income arising from disposals of trading stock and certain other assets
Guide to Subdivision 70 - D
70 - 75 What this Subdivision is about
70 - 80 Why the rules in this Subdivision are necessary
Operative provisions
70 - 85 Application of this Subdivision to certain other assets
70 - 90 Assessable income on disposal of trading stock outside the ordinary course of business
70 - 95 Purchase price is taken to be market value
70 - 100 Notional disposal when you stop holding an item as trading stock
70 - 105 Death of owner
70 - 110 You stop holding an item as trading stock but still own it
70 - 115 Compensation for lost trading stock
Subdivision 70 - E--Miscellaneous
70 - 120 Deducting capital costs of acquiring trees
Part 2 - 40--Rules affecting employees and other taxpayers receiving PAYG withholding payments
Division 80--General rules
Guide to Division 80
80 - 1 What this Division is about
Operative provisions
80 - 5 Holding of an office
80 - 10 Application to the termination of employment
80 - 15 Transfer of property
80 - 20 Payments for your benefit or at your direction or request
Division 82--Employment termination payments
Guide to Division 82
82 - 1 What this Division is about
Subdivision 82 - A--Employment termination payments: life benefits
Guide to Subdivision 82 - A
82 - 5 What this Subdivision is about
Operative provisions
82 - 10 Taxation of life benefit termination payments
Subdivision 82 - B--Employment termination payments: death benefits
Guide to Subdivision 82 - B
82 - 60 What this Subdivision is about
Operative provisions
82 - 65 Death benefits for dependants
82 - 70 Death benefits for non - dependants
82 - 75 Death benefits paid to trustee of deceased estate
Subdivision 82 - C--Key concepts
Guide to Subdivision 82 - C
82 - 125 What this Subdivision is about
Operative provisions
82 - 130 What is an employment termination payment ?
82 - 135 Payments that are not employment termination payments
82 - 140 Tax free component of an employment termination payment
82 - 145 Taxable component of an employment termination payment
82 - 150 What is an invalidity segment of an employment termination payment?
82 - 155 What is a pre - July 83 segment of an employment termination payment?
82 - 160 What is the ETP cap amount ?
Division 83--Other payments on termination of employment
Guide to Division 83
83 - 1 What this Division is about
Subdivision 83 - A--Unused annual leave payments
Guide to Subdivision 83 - A
83 - 5 What this Subdivision is about
Operative provisions
83 - 10 Unused annual leave payment is assessable
83 - 15 Entitlement to tax offset
Subdivision 83 - B--Unused long service leave payments
Guide to Subdivision 83 - B
83 - 65 What this Subdivision is about
General
83 - 70 Application--long service leave
83 - 75 Meaning of unused long service leave payment
83 - 80 Taxation of unused long service leave payments
83 - 85 Entitlement to tax offset
83 - 90 Meaning of pre - 16/8/78 period , pre - 18/8/93 period , post - 17/8/93 period and long service leave employment period
Employment wholly full - time or wholly part - time
83 - 95 How to work out amount of payment attributable to each period
83 - 100 How to work out unused days of long service leave for each period
83 - 105 How to work out long service leave accrued in each period
Employment partly full - time and partly part - time
83 - 110 Leave accrued in pre - 16/8/78, pre - 18/8/93 and post - 17/8/93 periods--employment full - time and part - time
Long service leave taken at less than full pay
83 - 115 Working out used days of long service leave if leave taken at less than full pay
Subdivision 83 - C--Genuine redundancy payments and early retirement scheme payments
Guide to Subdivision 83 - C
83 - 165 What this Subdivision is about
Operative provisions
83 - 170 Tax - free treatment of genuine redundancy payments and early retirement scheme payments
83 - 175 What is a genuine redundancy payment ?
83 - 180 What is an early retirement scheme payment ?
Subdivision 83 - D--Foreign termination payments
Guide to Subdivision 83 - D
83 - 230 What this Subdivision is about
Operative provisions
83 - 235 Termination payments tax free--foreign resident period
83 - 240 Termination payments tax free--Australian resident period
Subdivision 83 - E--Other payments
Guide to Subdivision 83 - E
83 - 290 What this Subdivision is about
Operative provisions
83 - 295 Termination payments made more than 12 months after termination etc.
Division 83A--Employee share schemes
Guide to Division 83A
83A - 1 What this Division is about
Subdivision 83A - A--Objects of Division and key concepts
83A - 5 Objects of Division
83A - 10 Meaning of ESS interest and employee share scheme
Subdivision 83A - B--Immediate inclusion of discount in assessable income
Guide to Subdivision 83A - B
83A - 15 What this Subdivision is about
Operative provisions
83A - 20 Application of Subdivision
83A - 25 Discount to be included in assessable income
83A - 30 Amount for which discounted ESS interest acquired
83A - 33 Reducing amounts included in assessable income--start ups
83A - 35 Reducing amounts included in assessable income--other cases
83A - 45 Further conditions for reducing amounts included in assessable income
Subdivision 83A - C--Deferred inclusion of gain in assessable income
Guide to Subdivision 83A - C
83A - 100 What this Subdivision is about
Main provisions
83A - 105 Application of Subdivision
83A - 110 Amount to be included in assessable income
83A - 115 ESS deferred taxing point--shares
83A - 120 ESS deferred taxing point--rights to acquire shares
83A - 125 Tax treatment of ESS interests held after ESS deferred taxing points
Takeovers and restructures
83A - 130 Takeovers and restructures
Subdivision 83A - D--Deduction for employer
Guide to Subdivision 83A - D
83A - 200 What this Subdivision is about
Operative provisions
83A - 205 Deduction for employer
83A - 210 Timing of general deductions
Subdivision 83A - E--Miscellaneous
83A - 305 Acquisition by associates
83A - 310 Forfeiture etc. of ESS interest
83A - 315 Market value of ESS interest
83A - 320 Interests in a trust
83A - 325 Application of Division to relationships similar to employment
83A - 330 Application of Division to ceasing employment
83A - 335 Application of Division to stapled securities
83A - 340 Application of Division to indeterminate rights
Part 2 - 42--Personal services income
Division 84--Introduction
84 - 1 What this Part is about
Operative provisions
84 - 5 Meaning of personal services income
84 - 10 This Part does not imply that individuals are employees
Division 85--Deductions relating to personal services income
Guide to Division 85
85 - 1 What this Division is about
Operative provisions
85 - 5 Object of this Division
85 - 10 Deductions for non - employees relating to personal services income
85 - 15 Deductions for rent, mortgage interest, rates and land tax
85 - 20 Deductions for payments to associates etc.
85 - 25 Deductions for superannuation for associates
85 - 30 Exception: personal services businesses
85 - 35 Exception: employees, office holders and religious practitioners
85 - 40 Application of Subdivision 900 - B to individuals who are not employees
Division 86--Alienation of personal services income
Guide to Division 86
86 - 1 What this Division is about
86 - 5 A simple description of what this Division does
Subdivision 86 - A--General
86 - 10 Object of this Division
86 - 15 Effect of obtaining personal services income through a personal services entity
86 - 20 Offsetting the personal services entity's deductions against personal services income
86 - 25 Apportionment of entity maintenance deductions among several individuals
86 - 27 Deduction for net personal services income loss
86 - 30 Assessable income etc. of the personal services entity
86 - 35 Later payments of, or entitlements to, personal services income to be disregarded for income tax purposes
86 - 40 Salary payments shortly after an income year
Subdivision 86 - B--Entitlement to deductions
86 - 60 General rule for deduction entitlements of personal services entities
86 - 65 Entity maintenance deductions
86 - 70 Car expenses
86 - 75 Superannuation
86 - 80 Salary or wages promptly paid
86 - 85 Deduction entitlements of personal services entities for amounts included in an individual's assessable income
86 - 87 Personal services entity cannot deduct net personal services income loss
86 - 90 Application of Divisions 28 and 900 to personal services entities
Division 87--Personal services businesses
Guide to Division 87
87 - 1 What this Division is about
87 - 5 Diagram showing the operation of this Division
Subdivision 87 - A--General
87 - 10 Object of this Division
87 - 15 What is a personal services business?
87 - 18 The results test for a personal services business
87 - 20 The unrelated clients test for a personal services business
87 - 25 The employment test for a personal services business
87 - 30 The business premises test for a personal services business
87 - 35 Personal services income from Australian government agencies
87 - 40 Application of this Division to certain agents
Subdivision 87 - B--Personal services business determinations
87 - 60 Personal services business determinations for individuals
87 - 65 Personal services business determinations for personal services entities
87 - 70 Applying etc. for personal services business determinations
87 - 75 When personal services business determinations have effect
87 - 80 Revoking personal services business determinations
87 - 85 Review of decisions
Chapter 3--Specialist liability rules
Part 3 - 1--Capital gains and losses: general topics
Division 100--A Guide to capital gains and losses
General overview
100 - 1 What this Division is about
100 - 5 Effect of this Division
100 - 10 Fundamentals of CGT
100 - 15 Overview of Steps 1 and 2
Step 1--Have you made a capital gain or a capital loss?
100 - 20 What events attract CGT?
100 - 25 What are CGT assets?
100 - 30 Does an exception or exemption apply?
100 - 33 Can there be a roll - over?
Step 2--Work out the amount of the capital gain or loss
100 - 35 What is a capital gain or loss?
100 - 40 What factors come into calculating a capital gain or loss?
100 - 45 How to calculate the capital gain or loss for most CGT events
Step 3--Work out your net capital gain or loss for the income year
100 - 50 How to work out your net capital gain or loss
100 - 55 How do you comply with CGT?
Keeping records for CGT purposes
100 - 60 Why keep records?
100 - 65 What records?
100 - 70 How long you need to keep records
Division 102--Assessable income includes net capital gain
Guide to Division 102
102 - 1 What this Division is about
102 - 3 Concessions in working out your net capital gain
Operative provisions
102 - 5 Assessable income includes net capital gain
102 - 10 How to work out your net capital loss
102 - 15 How to apply net capital losses
102 - 20 Ways you can make a capital gain or a capital loss
102 - 22 Amounts of capital gains and losses
102 - 23 CGT event still happens even if gain or loss disregarded
102 - 25 Order of application of CGT events
102 - 30 Exceptions and modifications
Division 103--General rules
Guide to Division 103
103 - 1 What this Division is about
Operative provisions
103 - 5 Giving property as part of a transaction
103 - 10 Entitlement to receive money or property
103 - 15 Requirement to pay money or give property
103 - 25 Choices
103 - 30 Reduction of cost base etc. by net input tax credits
Division 104--CGT events
Guide to Division 104
104 - 1 What this Division is about
104 - 5 Summary of the CGT events
Subdivision 104 - A--Disposals
104 - 10 Disposal of a CGT asset: CGT event A1
Subdivision 104 - B--Use and enjoyment before title passes
104 - 15 Use and enjoyment before title passes: CGT event B1
Subdivision 104 - C--End of a CGT asset
104 - 20 Loss or destruction of a CGT asset: CGT event C1
104 - 25 Cancellation, surrender and similar endings: CGT event C2
104 - 30 End of option to acquire shares etc.: CGT event C3
Subdivision 104 - D--Bringing into existence a CGT asset
104 - 35 Creating contractual or other rights: CGT event D1
104 - 40 Granting an option: CGT event D2
104 - 45 Granting a right to income from mining: CGT event D3
104 - 47 Conservation covenants: CGT event D4
Subdivision 104 - E--Trusts
104 - 55 Creating a trust over a CGT asset: CGT event E1
104 - 60 Transferring a CGT asset to a trust: CGT event E2
104 - 65 Converting a trust to a unit trust: CGT event E3
104 - 70 Capital payment for trust interest: CGT event E4
104 - 71 Adjustment of non - assessable part
104 - 72 Reducing your capital gain under CGT event E4 if you are a trustee
104 - 75 Beneficiary becoming entitled to a trust asset: CGT event E5
104 - 80 Disposal to beneficiary to end income right: CGT event E6
104 - 85 Disposal to beneficiary to end capital interest: CGT event E7
104 - 90 Disposal by beneficiary of capital interest: CGT event E8
104 - 95 Making a capital gain
104 - 100 Making a capital loss
104 - 105 Creating a trust over future property: CGT event E9
104 - 107A AMIT--cost base reduction exceeds cost base: CGT event E10
104 - 107B Annual cost base adjustment for member's unit or interest in AMIT
104 - 107C AMIT cost base net amount
104 - 107D AMIT cost base reduction amount
104 - 107E AMIT cost base increase amount
104 - 107F Receipt of money etc. increasing AMIT cost base reduction amount not to be treated as income
104 - 107G Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset--adjustment of cost of asset
104 - 107H Effect of AMIT cost base net amount on cost of AMIT membership interest or unit that is a revenue asset--amount included in assessable income
Subdivision 104 - F--Leases
104 - 110 Granting a lease: CGT event F1
104 - 115 Granting a long - term lease: CGT event F2
104 - 120 Lessor pays lessee to get lease changed: CGT event F3
104 - 125 Lessee receives payment for changing lease: CGT event F4
104 - 130 Lessor receives payment for changing lease: CGT event F5
Subdivision 104 - G--Shares
104 - 135 Capital payment for shares: CGT event G1
104 - 145 Liquidator or administrator declares shares or financial instruments worthless: CGT event G3
Subdivision 104 - H--Special capital receipts
104 - 150 Forfeiture of deposit: CGT event H1
104 - 155 Receipt for event relating to a CGT asset: CGT event H2
Subdivision 104 - I--Australian residency ends
104 - 160 Individual or company stops being an Australian resident: CGT event I1
104 - 165 Exception for individuals
104 - 170 Trust stops being a resident trust: CGT event I2
Subdivision 104 - J--CGT events relating to roll - overs
104 - 175 Company ceasing to be member of wholly - owned group after roll - over: CGT event J1
104 - 180 Sub - group break - up
104 - 182 Consolidated group break - up
104 - 185 Change in relation to replacement asset or improved asset after a roll - over under Subdivision 152 - E: CGT event J2
104 - 190 Replacement asset period
104 - 195 Trust failing to cease to exist after roll - over under Subdivision 124 - N: CGT event J4
104 - 197 Failure to acquire replacement asset and to incur fourth element expenditure after a roll - over under Subdivision 152 - E: CGT event J5
104 - 198 Cost of acquisition of replacement asset or amount of fourth element expenditure, or both, not sufficient to cover disregarded capital gain: CGT event J6
Subdivision 104 - K--Other CGT events
104 - 205 Incoming international transfer of emissions unit: CGT event K1
104 - 210 Bankrupt pays amount in relation to debt: CGT event K2
104 - 215 Asset passing to tax - advantaged entity: CGT event K3
104 - 220 CGT asset starts being trading stock: CGT event K4
104 - 225 Special collectable losses: CGT event K5
104 - 230 Pre - CGT shares or trust interest: CGT event K6
104 - 235 Balancing adjustment events for depreciating assets and certain assets used for R&D: CGT event K7
104 - 240 Working out capital gain or loss for CGT event K7: general case
104 - 245 Working out capital gain or loss for CGT event K7: pooled assets
104 - 250 Direct value shifts: CGT event K8
104 - 255 Carried interests: CGT event K9
104 - 260 Certain short - term forex realisation gains: CGT event K10
104 - 265 Certain short - term forex realisation losses: CGT event K11
104 - 270 Foreign hybrids: CGT event K12
Subdivision 104 - L--Consolidated groups and MEC groups
104 - 500 Loss of pre - CGT status of membership interests in entity becoming subsidiary member: CGT event L1
104 - 505 Where pre - formation intra - group roll - over reduction results in negative allocable cost amount: CGT event L2
104 - 510 Where tax cost setting amounts for retained cost base assets exceeds joining allocable cost amount: CGT event L3
104 - 515 Where no reset cost base assets and excess of net allocable cost amount on joining: CGT event L4
104 - 520 Where amount remaining after step 4 of leaving allocable cost amount is negative: CGT event L5
104 - 525 Error in calculation of tax cost setting amount for joining entity's assets: CGT event L6
104 - 535 Where reduction in tax cost setting amounts for reset cost base assets cannot be allocated: CGT event L8
Division 106--Entity making the gain or loss
Guide to Division 106
106 - 1 What this Division is about
Subdivision 106 - A--Partnerships
106 - 5 Partnerships
Subdivision 106 - B--Bankruptcy and liquidation
106 - 30 Effect of bankruptcy
106 - 35 Effect of liquidation
Subdivision 106 - C--Absolutely entitled beneficiaries
106 - 50 Absolutely entitled beneficiaries
Subdivision 106 - D--Securities, charges and encumbrances
106 - 60 Securities, charges and encumbrances
Division 108--CGT assets
Guide to Division 108
108 - 1 What this Division is about
Subdivision 108 - A--What a CGT asset is
108 - 5 CGT assets
108 - 7 Interest in CGT assets as joint tenants
Subdivision 108 - B--Collectables
108 - 10 Losses from collectables to be offset only against gains from collectables
108 - 15 Sets of collectables
108 - 17 Cost base of a collectable
Subdivision 108 - C--Personal use assets
108 - 20 Losses from personal use assets must be disregarded
108 - 25 Sets of personal use assets
108 - 30 Cost base of a personal use asset
Subdivision 108 - D--Separate CGT assets
Guide to Subdivision 108 - D
108 - 50 What this Subdivision is about
Operative provisions
108 - 55 When is a building a separate asset from land?
108 - 60 Depreciating asset that is part of a building is a separate asset
108 - 65 Land adjacent to land acquired before 20 September 1985
108 - 70 When is a capital improvement a separate asset?
108 - 75 Capital improvements to CGT assets for which a roll - over may be available
108 - 80 Deciding if capital improvements are related to each other
108 - 85 Meaning of improvement threshold
Division 109--Acquisition of CGT assets
Guide to Division 109
109 - 1 What this Division is about
Subdivision 109 - A--Operative rules
109 - 5 General acquisition rules
109 - 10 When you acquire a CGT asset without a CGT event
Subdivision 109 - B--Signposts to other acquisition rules
109 - 50 Effect of this Subdivision
109 - 55 Other acquisition rules
109 - 60 Acquisition rules outside this Part and Part 3 - 3
Division 110--Cost base and reduced cost base
Guide to Division 110
110 - 1 What this Division is about
110 - 5 Modifications to general rules
110 - 10 Rules about cost base not relevant for some CGT events
Subdivision 110 - A--Cost base
110 - 25 General rules about cost base
110 - 35 Incidental costs
110 - 36 Indexation
What does not form part of the cost base
110 - 37 Expenditure forming part of cost base or element
110 - 38 Exclusions
110 - 40 Assets acquired before 7.30 pm on 13 May 1997
110 - 43 Partnership interests acquired before 7.30 pm on 13 May 1997
110 - 45 Assets acquired after 7.30 pm on 13 May 1997
110 - 50 Partnership interests acquired after 7.30 pm on 13 May 1997
110 - 53 Exceptions to application of sections 110 - 45 and 110 - 50
110 - 54 Debt deductions disallowed by thin capitalisation rules
Subdivision 110 - B--Reduced cost base
110 - 55 General rules about reduced cost base
110 - 60 Reduced cost base for partnership assets
Division 112--Modifications to cost base and reduced cost base
Guide to Division 112
112 - 1 What this Division is about
112 - 5 Discussion of modifications
Subdivision 112 - A--General modifications
112 - 15 General rule for replacement modifications
112 - 20 Market value substitution rule
112 - 25 Split, changed or merged assets
112 - 30 Apportionment rules
112 - 35 Assumption of liability rule
112 - 36 Acquisitions of assets involving look - through earnout rights
112 - 37 Put options
Subdivision 112 - B--Finding tables for special rules
112 - 40 Effect of this Subdivision
112 - 45 CGT events
112 - 46 Annual cost base adjustment for member's unit or interest in AMIT
112 - 48 Gifts acquired by associates
112 - 50 Main residence
112 - 53 Scrip for scrip roll - over
112 - 53AA ........................ Statutory licences
112 - 53AB .................... Change of incorporation
112 - 53A MDO roll - over
112 - 53B Exchange of stapled ownership interests for units in a unit trust
112 - 53C Water entitlement roll - overs
112 - 54 Demergers
112 - 54A Transfer of assets between certain trusts
112 - 55 Effect of you dying
112 - 60 Bonus shares or units
112 - 65 Rights
112 - 70 Convertible interests
112 - 77 Exchangeable interests
112 - 78 Exploration investments
112 - 80 Leases
112 - 85 Options
112 - 87 Residency
112 - 90 An asset stops being a pre - CGT asset
112 - 92 Demutualisation of certain entities
112 - 95 Transfer of tax losses and net capital losses within wholly - owned groups of companies
112 - 97 Modifications outside this Part and Part 3 - 3
Subdivision 112 - C--Replacement - asset roll - overs
112 - 100 Effect of this Subdivision
112 - 105 What is a replacement - asset roll - over?
112 - 110 How is the cost base of the replacement asset modified?
112 - 115 Table of replacement - asset roll - overs
Subdivision 112 - D--Same - asset roll - overs
112 - 135 Effect of this Subdivision
112 - 140 What is a same - asset roll - over?
112 - 145 How is the cost base of the asset modified?
112 - 150 Table of same - asset roll - overs
Division 114--Indexation of cost base
114 - 1 Indexing elements of cost base
114 - 5 When indexation relevant
114 - 10 Requirement for 12 months ownership
114 - 15 Cost base modifications
114 - 20 When expenditure is incurred for roll - overs
Division 115--Discount capital gains and trusts' net capital gains
Guide to Division 115
115 - 1 What this Division is about
Subdivision 115 - A--Discount capital gains
What is a discount capital gain?
115 - 5 What is a discount capital gain ?
115 - 10 Who can make a discount capital gain?
115 - 15 Discount capital gain must be made after 21 September 1999
115 - 20 Discount capital gain must not have indexed cost base
115 - 25 Discount capital gain must be on asset acquired at least 12 months before
115 - 30 Special rules about time of acquisition
115 - 32 Special rule about time of acquisition for certain replacement - asset roll - overs
115 - 34 Further special rule about time of acquisition for certain replacement - asset roll - overs
What are not discount capital gains?
115 - 40 Capital gain resulting from agreement made within a year of acquisition
115 - 45 Capital gain from equity in an entity with newly acquired assets
115 - 50 Discount capital gain from equity in certain entities
115 - 55 Capital gains involving money received from demutualisation of friendly society health or life insurer
Subdivision 115 - B--Discount percentage
115 - 100 What is the discount percentage for a discount capital gain
115 - 105 Foreign or temporary residents--individuals with direct gains
115 - 110 Foreign or temporary residents--individuals with trust gains
115 - 115 Foreign or temporary residents--percentage for individuals
115 - 120 Foreign or temporary residents--trusts with certain gains
115 - 125 Investors disposing of property used for affordable housing
Subdivision 115 - C--Rules about trusts with net capital gains
Guide to Subdivision 115 - C
115 - 200 What this Division is about
Operative provisions
115 - 210 When this Subdivision applies
115 - 215 Assessing presently entitled beneficiaries
115 - 220 Assessing trustees under section 98 of the Income Tax Assessment Act 1936
115 - 222 Assessing trustees under section 99 or 99A of the Income Tax Assessment Act 1936
115 - 225 Attributable gain
115 - 227 Share of a capital gain
115 - 228 Specifically entitled to an amount of a capital gain
115 - 230 Choice for resident trustee to be specifically entitled to capital gain
Subdivision 115 - D--Tax relief for shareholders in listed investment companies
Guide to Subdivision 115 - D
115 - 275 What this Subdivision is about
Operative provisions
115 - 280 Deduction for certain dividends
115 - 285 Meaning of LIC capital gain
115 - 290 Meaning of listed investment company
115 - 295 Maintaining records
Division 116--Capital proceeds
Guide to Division 116
116 - 1 What this Division is about
116 - 5 General rules
116 - 10 Modifications to general rules
General rules
116 - 20 General rules about capital proceeds
Modifications to general rules
116 - 25 Table of modifications to the general rules
116 - 30 Market value substitution rule: modification 1
116 - 35 Companies and trusts that are not widely held
116 - 40 Apportionment rule: modification 2
116 - 45 Non - receipt rule: modification 3
116 - 50 Repaid rule: modification 4
116 - 55 Assumption of liability rule: modification 5
116 - 60 Misappropriation rule: modification 6
Special rules
116 - 65 Disposal etc. of a CGT asset the subject of an option
116 - 70 Option requiring both acquisition and disposal etc.
116 - 75 Special rule for CGT event happening to a lease
116 - 80 Special rule if CGT asset is shares or an interest in a trust
116 - 85 Section 47A of 1936 Act applying to rolled - over asset
116 - 95 Company changes residence from an unlisted country
116 - 100 Gifts of property
116 - 105 Conservation covenants
116 - 110 Roll - overs for merging superannuation funds
116 - 115 Farm - in farm - out arrangements
116 - 120 Disposals of assets involving look - through earnout rights
Division 118--Exemptions
Guide to Division 118
118 - 1 What this Division is about
Subdivision 118 - A--General exemptions
Exempt assets
118 - 5 Cars, motor cycles and valour decorations
118 - 10 Collectables and personal use assets
118 - 12 Assets used to produce exempt income etc.
118 - 13 Shares in a PDF
118 - 15 Registered emissions units
Anti - overlap provisions
118 - 20 Reducing capital gains if amount otherwise assessable
118 - 21 Carried interests
118 - 22 Superannuation lump sums and employment termination payments
118 - 24 Depreciating assets
118 - 25 Trading stock
118 - 27 Division 230 financial arrangements and financial arrangements to which Subdivision 250 - E applies
118 - 30 Film copyright
118 - 35 R&D
Exempt or loss - denying transactions
118 - 37 Compensation, damages etc.
118 - 40 Expiry of a lease
118 - 42 Transfer of stratum units
118 - 45 Sale of rights to mine
118 - 55 Foreign currency hedging gains and losses
118 - 60 Certain gifts
118 - 65 Later distributions of personal services income
118 - 70 Transactions by exempt entities
118 - 75 Marriage or relationship breakdown settlements
118 - 77 Native title and rights to native title benefits
Boat capital gains
118 - 80 Reduction of boat capital gain
118 - 85 Special disability trusts
Subdivision 118 - B--Main residence
Guide to Subdivision 118 - B
118 - 100 What this Subdivision is about
118 - 105 Map of this Subdivision
Basic case and concepts
118 - 110 Basic case
118 - 115 Meaning of dwelling
118 - 120 Extension to adjacent land etc.
118 - 125 Meaning of ownership period
118 - 130 Meaning of ownership interest in land or a dwelling
Rules that may extend the exemption
118 - 135 Moving into a dwelling
118 - 140 Changing main residences
118 - 145 Absences
118 - 147 Absence from dwelling replacing main residence that was compulsorily acquired, destroyed etc.
118 - 150 If you build, repair or renovate a dwelling
118 - 155 Where individual referred to in section 118 - 150 dies
118 - 160 Destruction of dwelling and sale of land
Rules that may limit the exemption
118 - 165 Separate CGT event for adjacent land or other structures
118 - 170 Spouse having different main residence
118 - 175 Dependent child having different main residence
Roll - overs under Subdivision 126 - A
118 - 178 Previous roll - over under Subdivision 126 - A
118 - 180 Acquisition of dwelling from company or trust on marriage or relationship breakdown--roll - over provision applying
Partial exemption rules
118 - 185 Partial exemption where dwelling was your main residence during part only of ownership period
118 - 190 Use of dwelling for producing assessable income
118 - 192 Special rule for first use to produce income
Dwellings acquired from deceased estates
118 - 195 Dwelling acquired from a deceased estate
118 - 197 Special rule for surviving joint tenant
118 - 200 Partial exemption for deceased estate dwellings
118 - 205 Adjustment if dwelling inherited from deceased individual
118 - 210 Trustee acquiring dwelling under will
118 - 215 What the following provisions are about
118 - 218 Exemption available to trustee--main case
118 - 220 Exemption available to trustee--after the principal beneficiary's death
118 - 222 Exemption available to other beneficiary who acquires the CGT asset after the principal beneficiary's death
118 - 225 Amount of exemption available after the principal beneficiary's death--general
118 - 227 Amount of exemption available after the principal beneficiary's death--cost base and reduced cost base
118 - 230 Application of CGT events E5 and E7 in relation to main residence exemption and special disability trusts
Compulsory acquisitions of adjacent land only
118 - 240 What the following provisions are about
118 - 245 CGT events happening only to adjacent land
118 - 250 Compulsory acquisitions of adjacent land
118 - 255 Maximum exempt area
118 - 260 Partial exemption rules
118 - 265 Extension to adjacent structures
Subdivision 118 - D--Insurance and superannuation
118 - 300 Insurance policies
118 - 305 Superannuation
118 - 310 RSA's
118 - 313 Superannuation agreements under the Family Law Act
118 - 315 Segregated exempt assets of life insurance companies
118 - 320 Segregated current pension assets of a complying superannuation entity
Subdivision 118 - E--Units in pooled superannuation trusts
118 - 350 Units in pooled superannuation trusts
Subdivision 118 - F--Venture capital investment
Guide to Subdivision 118 - F
118 - 400 What this Subdivision is about
Operative provisions
118 - 405 Exemption for certain foreign venture capital investments through venture capital limited partnerships
118 - 407 Exemption for certain venture capital investments through early stage venture capital limited partnerships
118 - 408 Partial exemption for some capital gains otherwise fully exempt under section 118 - 407
118 - 410 Exemption for certain foreign venture capital investments through Australian venture capital funds of funds
118 - 415 Exemption for certain venture capital investments by foreign residents
118 - 420 Meaning of eligible venture capital partner etc.
118 - 425 Meaning of eligible venture capital investment --investments in companies
118 - 427 Meaning of eligible venture capital investment --investments in unit trusts
118 - 428 Additional investment requirements for ESVCLPs
118 - 430 Meaning of at risk
118 - 432 Findings of substantially novel applications of technology
118 - 435 Special rule relating to investment in foreign resident holding companies
118 - 440 Meaning of permitted entity value
118 - 445 Meaning of committed capital
118 - 450 Values of assets and investments of entities without auditors
118 - 455 Impact Assessment of this Subdivision
Subdivision 118 - G--Venture capital: investment by superannuation funds for foreign residents
Guide to Subdivision 118 - G
118 - 500 What this Subdivision is about
118 - 505 Exemption for certain foreign venture capital
118 - 510 Meaning of resident investment vehicle
118 - 515 Meaning of venture capital entity
118 - 520 Meaning of superannuation fund for foreign residents
118 - 525 Meaning of venture capital equity
Subdivision 118 - H--Demutualisation of Tower Corporation
118 - 550 Demutualisation of Tower Corporation
Subdivision 118 - I--Look - through earnout rights
118 - 560 Object
118 - 565 Look - through earnout rights
118 - 570 Extra ways a CGT asset can be an active asset
118 - 575 Creating and ending look - through earnout rights
118 - 580 Temporarily disregard capital losses affected by look - through earnout rights
Division 121--Record keeping
Guide to Division 121
121 - 10 What this Division is about
Operative provisions
121 - 20 What records you must keep
121 - 25 How long you must retain the records
121 - 30 Exceptions
121 - 35 Asset register entries
Table of Subdivisions
Guide to Division 70
70 - A What is trading stock
70 - B Acquiring trading stock
70 - C Accounting for trading stock you hold at the start or end of the income year
70 - D Assessable income arising from disposals of trading stock and certain other assets
70 - E Miscellaneous