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
6 After subsection 104-70(7)
Insert:
(7A) The amount of the non-assessable part for an entity shown in the table is adjusted to exclude the amount shown in the table:
|
Adjustment of non-assessable part for certain entities |
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|---|---|
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Entity |
Amount excluded from non-assessable part |
|
1 Company |
the amount attributable to the exclusion of an amount of a *discount capital gain from the trust's *net capital gain because of step 4 of the method statement in subsection 102-5(1) |
|
2 *Complying superannuation entity |
1/3 of the amount attributable to the exclusion of an amount of a *discount capital gain from the trust's *net capital gain because of step 4 of the method statement in subsection 102-5(1) |
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3 Entity that has applied a *capital loss or *net capital loss to reduce its *capital gain described in subparagraph 115-215(3)(a)(ii) |
1/2 of the amount of the capital loss or net capital loss applied to reduce the capital gain |
Note 1: Step 4 of the method statement in subsection 102-5(1) reduces by 50% the trust's discount capital gains remaining after application of capital losses and earlier net capital losses. That 50% is excluded from the trust's net capital gain.
Note 2: Subparagraph 115-215(3)(a)(ii) treats a beneficiary as having a capital gain equal to double the part (if any) of the amount of the trust's net income that is included in the beneficiary's assessable income and is attributable to the trust estate's discounted capital gain mentioned in subsection 102-5(1) (as it applies to the trust estate).