New Business Tax System (Integrity and Other Measures) Act 1999 (Incorporating amendments up to Act No. 78 of 2001) (169 of 1999)

Schedule 9   Concessions for capital gains by individuals and some other entities

Part 1   New rules

Income Tax Assessment Act 1997

2   After section 102-1

Insert:

102-3 Concessions in working out your net capital gain

(1) Concessional rules apply to working out the net capital gain of some entities (see subsection (2)) if:

(a) they have a capital gain (a discount capital gain ) from a CGT asset acquired at least 12 months before the CGT event that caused the capital gain; and

(b) they have not chosen to include indexation in the cost base of the asset for working out the capital gain (if relevant).

Note 1: Division 115 explains what is a discount capital gain.

Note 2: Under Division 110, the entity can choose to include indexation in the cost base of a CGT asset acquired at or before 11.45 am on 21 September 1999.

(2) Only these entities get the concession:

(a) individuals;

(b) complying superannuation entities;

(c) trusts.

(3) The concession is that the net capital gain includes only part of the amount of the discount capital gain left after applying capital losses and net capital losses from earlier income years.

See subsection 102-5(1).