Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 After paragraph 104 - 71(1)(d)
Insert:
(da) a payment to which paragraph 118 - 37(1)(ba) applies (about compensation paid through a trust); or
2 Before paragraph 104 - 71(1)(e)
Insert:
(db) a payment to which subsection 118 - 300(1A) applies (about insurance and annuity payments paid through a trust); or
3 Paragraphs 118 - 37(1)(a) and (b)
Repeal the paragraphs, substitute:
(a) compensation or damages you receive for:
(i) any wrong or injury you suffer in your occupation; or
(ii) any wrong, injury or illness you or your * relative suffers personally;
(b) compensation or damages you receive as the trustee of a trust (other than a trust that is a * complying superannuation entity) for:
(i) any wrong or injury a beneficiary of the trust suffers in his or her occupation; or
(ii) any wrong, injury or illness a beneficiary of the trust, or the beneficiary's relative, suffers personally;
(ba) a * CGT asset you receive, as a beneficiary of a trust, from the trustee of the trust to the extent that the CGT asset is attributable to compensation or damages that the trustee receives as described in paragraph ( b) for:
(i) any wrong or injury you suffer in your occupation; or
(ii) any wrong, injury or illness you or your relative suffers personally;
4 Subsection 118 - 300(1) (table item 3)
Repeal the item, substitute:
3 | A policy of insurance on the life of an individual or an * annuity instrument | the original owner of the policy or instrument (other than the trustee of a * complying superannuation entity) |
5 Subsection 118 - 300(1) (at the end of the table)
Add:
7 | A policy of insurance against an individual suffering an illness or injury | the trustee of a * complying superannuation entity for the income year in which the * CGT event happened |
6 After subsection 118 - 300(1)
Insert:
Payment to trust beneficiary (or representative) if trustee owns the policy or instrument
(1A) A * capital gain or * capital loss you make from a * CGT event happening because you receive a * CGT asset from the trustee of a trust is disregarded if:
(a) you receive the CGT asset as:
(i) a beneficiary of the trust; or
(ii) a * legal personal representative of a beneficiary of the trust; and
(b) the CGT asset is attributable to another CGT event and CGT asset to which table item 3 in subsection ( 1) applies for the trustee.
7 Subsection 295 - 85(4) (table item 10)
Repeal the item, substitute:
10 | Subsection 118 - 300(1), for general insurance policies covered by table item 2 in that subsection | General insurance policies for property |
8 Application of amendments
The amendments made by this Schedule apply in relation to CGT events happening in the 2005 - 06 income year and later income years.