Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 115 - Discount capital gains and certain trust capital gains  

Subdivision 115-B - Discount percentage  

SECTION 115-102   New residential dwellings  

115-102(1)    
This section applies to a * discount capital gain if:

(a)    you are an individual; and

(b)    neither section 115-105 nor 115-110 (about foreign or temporary residents) applies to the discount capital gain; and

(c)    either:

(i) you make the discount capital gain from a * CGT event happening on or after 1 July 2027 in relation to a * CGT asset covered by subsection (2) ; or

(ii) because of section 115-215 , Division 102 applies to you as if you had made the discount capital gain for a * capital gain of a trust covered by subsection (4) ; and

(d)    where subparagraph (c)(ii) applies - the trust ' s capital gain was made directly, or indirectly through one or more entities that are all covered by subsection (4) , from a CGT event happening on or after 1 July 2027 in relation to a CGT asset covered by subsection (2) .

Note:

The discount percentage for the discount capital gain is 50% (see paragraph 115-100(a) ).

CGT assets to which this section relates

115-102(2)    
This subsection covers a * new residential dwelling.

Relevant trusts and interposed entities

115-102(4)    
This subsection covers the following:

(a)    a trust, other than a * superannuation fund or a public unit trust (within the meaning of section 102P of the Income Tax Assessment Act 1936 );

(b)    a partnership.

Note:

For paragraph (a) , a trust includes a managed investment trust.

Indexation may be able to be chosen as an alternative

115-102(5)    
Despite subsection (1) , the following person may choose for this section not to apply to the * discount capital gain:

(a)    if you make the discount capital gain in the way described in subparagraph (1)(c)(i) - you;

(b)    if you make the discount capital gain in the way described in subparagraph (1)(c)(ii) - the trustee of the trust.

Such a choice by the trustee applies to you in a similar way to a choice made by you for a gain covered by paragraph (a) .

Note:

Instead, the cost base of the CGT asset may be able to be indexed (see subsection 110-36(1A) ).