Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 108 - CGT assets  

Subdivision 108-B - Collectables  

SECTION 108-10   Losses from collectables to be offset only against gains from collectables  

108-10(1)    
In working out your * net capital gain or * net capital loss for the income year, * capital losses from * collectables can be used only to reduce * capital gains from collectables.

Note:

You choose the order in which you reduce your capital gains from collectables by your capital losses from collectables.

Example:

Your capital gains from collectables total $ 200 and your capital losses from collectables total $ 400. You have other capital gains of $ 500. You have a net capital gain of $ 500 and a net capital loss from collectables of $ 200.

The losses from collectables cannot be used to reduce the $ 500 capital gain.

108-10(2)    
A collectable is:

(a) * artwork, jewellery, an antique, or a coin or medallion; or

(b) a rare folio, manuscript or book; or

(c) a postage stamp or first day cover;

that is used or kept mainly for your (or your * associate's) personal use or enjoyment.

108-10(3)    
These are also collectables :

(a) an interest in any of the things covered by subsection (2); or

(b) a debt that arises from any of those things; or

(c) an option or right to * acquire any of those things.

Note:

Collectables acquired for $ 500 or less are exempt. However, you get an exemption for an interest in one only if the market value of all the interests combined is $ 500 or less: see Subdivision 118-A .

108-10(4)    
If some or all of a * capital loss from a * collectable cannot be applied in an income year, the unapplied amount can be applied in the next income year for which your * capital gains from * collectables exceed your * capital losses (if any) from collectables.

Example:

You have a capital gain from a collectable for the income year of $ 200 and a capital loss from another collectable of $ 600.

Your capital loss from one collectable reduces your capital gain from the other to zero. You cannot apply the remaining $ 400 of the capital loss in this income year, but you can apply it in a later income year.

108-10(5)    
If you have 2 or more unapplied * net capital losses from * collectables, you must apply them in the order you made them.