Income Tax Assessment Act 1997
Concessional rules apply to working out the net capital gain of some entities (see subsection (2)) if:
(a) they have a capital gain (a discount capital gain ) from a CGT asset acquired at least 12 months before the CGT event that caused the capital gain; and
(b) they have not chosen to include indexation in the cost base of the asset for working out the capital gain (if relevant).
Division 115 explains what is a discount capital gain.
Under Division 110 , the entity can choose to include indexation in the cost base of a CGT asset acquired at or before 11.45 am on 21 September 1999.102-3(2)
Only these entities get the concession:
(b) complying superannuation entities;
(d) life insurance companies, in relation to discount capital gains for CGT events in respect of CGT assets that are complying superannuation assets.
Shareholders in a listed investment company can also receive a concession equivalent to a discount capital gain: see Subdivision 115-D .
The concession is that the net capital gain includes only part of the amount of the discount capital gain left after applying capital losses and net capital losses from earlier income years.
See subsection 102-5(1) .
|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|