• Modification rule for capital gains

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Profits or gains of a capital nature are determined on the basis of the period that would have been used under Part XI of that Act instead of applying the special rules in Part X of the ITAA 1936. [subsection 559A(5)]

    This rule ensures that any choice in relation to a FIF will not:

    • refresh the cost base of assets that are held by the FIF;
    • change the time of acquisition of an asset held by a FIF; or
    • impact on the events that result in a capital gain being ignored.
    Last modified: 04 Feb 2010QC 21777