Tax and Superannuation Laws Amendment (2015 Measures No. 6) Act 2016 (10 of 2016)

Schedule 1   CGT treatment of earnout rights

Part 3   Other consequential amendments

Income Tax Assessment Act 1997

27   Subsection 974-85(1)

Repeal the subsection, substitute:

(1) A right, or the amount of a return, is contingent on aspects of the economic performance of an entity, or a part of the entity's activities, if the right or return is contingent on the economic performance of that entity, or that part of those activities, but not solely because of one of the following:

(a) the ability or willingness of an entity to meet the obligation to satisfy the right to the return;

(b) the receipts or turnover of the entity or the turnover generated by those activities.