Income Tax Assessment Act 1997
A *capital gain or *capital loss you make:
(a) from a *CGT asset; or
(b) in creating a CGT asset; or
(c) from the discharge of a liability;
is disregarded if, at the time of the *CGT event, the asset or liability is, or is part of, a *Division 230 financial arrangement.
Paragraph (b) is relevant for CGT event D1.
Paragraph (c) is relevant for CGT event L7.118-27(2)
Subsection (1) does not apply to the following:
(a) a gain or loss that subsection 230-310(4) (which deals with hedging financial arrangements) provides is to be treated as a *capital gain or *capital loss;
(b) a loss that is reduced under subsection 230-465(2) , to the extent of that reduction (this is the extent to which the loss is of a capital nature). 118-27(3)
Subsection (1) does not apply if the situation that gives rise to the *CGT event does not result in a gain from the arrangement being included in your assessable income under Division 230 , or in a loss from the arrangement entitling you to a deduction under Division 230 . 118-27(4)
A *capital gain or *capital loss you make from a *CGT asset is disregarded if, at the time of the *CGT event, the asset is, or is part of, a *financial arrangement to which Subdivision 250-E applies.