Income Tax Assessment Act 1997
You can choose to disregard all or part of each *capital gain to which this Subdivision applies.
You make capital gains equal to any parts that you do not choose to disregard.
Section 103-25 tells you when the choice must be made.152-315(2)
However, the choice must be made in a way that ensures that:
(a) for an individual - your *CGT retirement exemption limit is not exceeded; or
(b) for a company or trust - the CGT retirement exemption limit of each individual for whom the choice is made is not exceeded. 152-315(3)
The amount chosen for the asset is its CGT exempt amount . 152-315(4)
The *CGT exempt amount must be specified in writing. 152-315(5)
If a company or trust is making the choice and it has more than one *CGT concession stakeholder, it must specify in writing the percentage of each *CGT asset ' s *CGT exempt amount that is attributable to each of those stakeholders. One or more of the percentages may be nil, but all of the percentages must add up to 100%.
Daryl is a significant individual in a company. The company specifies 90% for Daryl under subsection (5) (which means that the percentage specified for the other stakeholder must be 10%). Daryl ' s retirement exemption limit is $500,000.
To determine whether subsection (2) is complied with, Daryl would take 90% of the asset ' s CGT exempt amount, add that to amounts previously specified in choices made by or for him under this Subdivision and see whether the total exceeds $500,000.
Subsections (4) and (5) are exceptions to the general rule about choices in section 103-25 .