Tax Laws Amendment (2006 Measures No. 7) Act 2007 (55 of 2007)

Schedule 1   Small business relief for CGT events

Income Tax Assessment Act 1997

49   Subsections 152-310(2) and (3)

Repeal the subsections, substitute:

Additional consequence for an individual

(2) This Act applies to you as if:

(a) an *eligible termination payment of the following amount (up to the asset’s *CGT exempt amount) were made to you:

(i) if the relevant *CGT event is CGT event J2, J5 or J6 - the amount of the *capital gain you made from that event;

(ii) otherwise - the amount of *capital proceeds from the CGT event; and

(b) either:

(i) if the relevant CGT event is CGT event J2, J5 or J6 - the payment were made to you when you made the choice; and

(ii) otherwise - the payment were made to you at the later of when you made the choice and when you received the proceeds.

Note: For the rules about eligible termination payments, see Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936.

(3) If you receive the *capital proceeds from the CGT event in instalments, subsection (2) applies to each instalment in succession (up to the asset’s *CGT exempt amount).