Tax Laws Amendment (2011 Measures No. 7) Act 2011 (147 of 2011)
Schedule 1 Removing tax issues facing special disability trusts
Part 1 Extending CGT main residence exemption to special disability trusts
Income Tax Assessment Act 1997
2 Subsection 104-85(6)
Repeal the subsection, substitute:
Exceptions for beneficiary
(6) A *capital gain or *capital loss the beneficiary makes is disregarded if:
(a) the beneficiary *acquired the *CGT asset that is the interest (except by way of an assignment from another entity) for no expenditure; or
(b) the beneficiary acquired it before 20 September 1985; or
(c) all or part of the capital gain or capital loss the trustee makes from the *CGT event is disregarded under Subdivision 118-B (about main residence).
Expenditure can include giving property: see section 103-5.
Note 1: For provisions affecting the application of Subdivision 118-B to the trustee, see sections 118-215 to 118-230.
Note 2: There is also an exception for employee share trusts: see section 130-90.