Income Tax (Transitional Provisions) Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-30 - SUPERANNUATION  

Division 296 - Better targeted superannuation concessions  

Subdivision 296-B - CGT adjustments  

SECTION 296-50   CGT adjustment for small superannuation funds  

296-50(1)    
This section applies if:

(a)    a CGT event happens in relation to a CGT asset of a small superannuation fund at a time during an income year; and

(b)    the CGT asset is an asset of the fund:

(i) at the end of 30 June 2026; and

(ii) at all times on and from 1 July 2026 to immediately before that CGT event; and

(c)    the trustee of the fund has made a choice for the purposes of this paragraph in accordance with subsection (2) .

296-50(2)    
A choice for the purposes of paragraph (1)(c) :

(a)    is to be in the approved form; and

(b)    applies to all CGT assets that are assets of the fund at the end of 30 June 2026; and

(c)    can only be made during the period:

(i) starting on the day this section commences; and

(ii) ending on the due day for lodging the fund ' s income tax return for the 2026-27 income year; and

(d)    cannot be revoked.

296-50(3)    
For the purposes of working out the Division 296 fund earnings for the fund for the year under the Income Tax Assessment Act 1997 , to the extent it is affected by the cost base or reduced cost base of the CGT asset:

(a)    the first element of the cost base or reduced cost base is taken to be the asset ' s market value as at the end of 30 June 2026; and

(b)    each other element of the cost base or reduced cost base is taken to have been adjusted to nil at the end of 30 June 2026 (such that any amounts that formed part of the cost base or reduced cost base on or before that day are disregarded); and

(c)    in relation to the cost base:

(i) there is taken to be no indexation included in any of the elements of the cost base; and

(ii) paragraph 115-20(1)(a) (about using a cost base that has been calculated without reference to indexation) of that Act is taken to be satisfied (if applicable).

296-50(4)    
This section does not affect the amount of a net capital loss for any later income year for the purposes of working out Division 296 fund earnings.