Income Tax Assessment Act 1997



Division 295 - Taxation of superannuation entities  

Subdivision 295-B - Modifications of provisions of this Act  

SECTION 295-85   CGT to be primary code for calculating gains or losses  

The modifications in subsection (2) apply if a *CGT event happens involving a *CGT asset that was owned by a *complying superannuation entity just before the time of the event.

These provisions do not apply to the *CGT event:

(a) sections 6-5 (about *ordinary income), 8-1 (about amounts you can deduct), and 15-15 and 25-40 (about profit-making undertakings or plans);

(aa) section 230-15 (about financial arrangements);

(b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit-making undertakings or schemes).


The provisions referred to in subsection (2) can apply to the *CGT event if:

(a) any *capital gain or *capital loss from the event is attributable to currency exchange rate fluctuations; or

(b) the *CGT asset is one of these:

(i) debenture stock, a bond, *debenture, certificate of entitlement, bill of exchange, promissory note or other security;

(ii) a deposit with a bank, building society or other financial institution;

(iii) a loan (secured or not);

(iv) some other contract under which an entity is liable to pay an amount (whether the liability is secured or not).


The provisions referred to in subsection (2) can also apply to the *CGT event if a *capital gain or *capital loss from the event is disregarded because of one of the provisions in this table:

Where gain or loss disregarded because of CGT provision
Item Provision Brief description
1 Paragraph 104-15(4)(a) Title in a CGT asset does not pass when a hire purchase or similar agreement ends
2 Section 118-5 Cars, motor cycles and valour decorations
3 Section 118-10 Collectables and personal use assets
4 Section 118-13 Shares in a PDF
5 Section 118-25 Trading stock
6 Section 118-30 Film copyright
7 Section 118-35 R & D
8 Section 118-55 Foreign currency hedging gains and losses
9 Section 118-60 Certain gifts
10 Subsection 118-300(1), for general insurance policies covered by table item 2 in that subsection General insurance policies for property
11 Section 118-305 Superannuation
12 Section 118-310 CGT event happens to right to, or part of, RSA


For item 5, certain assets (particularly shares, units in a unit trust, and land) are not trading stock when owned by the entity (see paragraph 70-10(2)(b) ).

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