Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
A *capital gain or *capital loss is disregarded if you make it from a *CGT event happening in relation to any of the following:
(a) a right to an allowance, annuity or capital amount payable out of a *superannuation fund or *approved deposit fund;
(b) a right to an asset of such a fund;
(c) a right to any part of such an allowance, annuity, capital amount or asset.
However, this exemption is not available if:
(a) you are the trustee of the fund and a *CGT event happens in relation to a *CGT asset of the fund; or
(b) an entity receives a payment or property where:
Subsection (2) does not apply if:
(a) a *payment split applies to a *splittable payment; and
(b) as a result, a payment is made to the *non-member spouse (or to his or her *legal personal representative if the non-member spouse has died).
Division 118
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Exemptions
Subdivision 118-D
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Insurance and superannuation
SECTION 118-305
Superannuation
118-305(1)
A *capital gain or *capital loss is disregarded if you make it from a *CGT event happening in relation to any of the following:
(a) a right to an allowance, annuity or capital amount payable out of a *superannuation fund or *approved deposit fund;
(b) a right to an asset of such a fund;
(c) a right to any part of such an allowance, annuity, capital amount or asset.
Example:118-305(2)Angela retires from her employment and receives a lump sum payment from her superannuation fund. This is an example of CGT event C2 (her rights to receive the payment ending). There are no CGT consequences for Angela.
However, this exemption is not available if:
(a) you are the trustee of the fund and a *CGT event happens in relation to a *CGT asset of the fund; or
(b) an entity receives a payment or property where:
(i) the entity was not a member of the fund; and
118-305(3)
(ii) the entity *acquired the right to the payment or property for consideration.
Subsection (2) does not apply if:
(a) a *payment split applies to a *splittable payment; and
(b) as a result, a payment is made to the *non-member spouse (or to his or her *legal personal representative if the non-member spouse has died).
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